My stock pick of the month is OTC ticker ACBFF : Aurora Cannabis. I chose Aurora because of the impending legalization of recreational marijuana use in Canada in October. Marijuana stocks are currently bullish with other heavy hitters like Canopy Growth and Tilray making huge gains over the last month.
As of September 17,2018 there has been rumors/whispers of Coca Cola being in talks with the company. The CCO of Aurora was recently interviewed on the Midas Letter & advised the company plans to list in the US in October which is good news and gives the company more legitimacy. Also, Aurora is currently under $8/share compared to the other major players like Canopy Growth which is $49/share and Tilray ,which I believe is way overvalued, at over $120/share. Aurora Cannabis has been acquiring many other companies in Canada and internationally in the last year looking to be a future mega force in the cannabis sector. At this time many are worried about the ACBFF stock being diluted due to multiple acquisitions meaning there is a high amount of floating shares. I understand the concern, it is a risky investment but as with the whole cannabis sector there is a chance of huge returns in the long term. Dilution is an issue but since it is a young market there is plenty of room for growth. It is also wise to remember that cannabis/marijuana isn’t legal everywhere. It is legal in certain states in the United States of America but not on a federal level. There are also European countries that it is legal. There is future opportunities outside of Canada for when it becomes legalized in other countries. This allows them to have a head start on production. At this time, Aurora Cannabis is setting itself up to have a high production rate not just for recreational use but for medicinal use worldwide. Since it is still a new market/ young company future profits are purely speculative.
DISCLAIMER*** Investing is risky and anytime you invest in the stock market you risk losing money. I am not affiliated with this company nor am I financial advisor or stock broker. I recommend you do your due diligence and research companies on your own before investing. Also, I suggest reviewing companies financial statements and speaking with a certified financial planner before investing if you are new to investing.