Forbes write……..
Aurora Cannabis Is Building “Ghost Greenhouses”
Aurora Cannabis is losing an outrageous amount of money, and the losses are growing by the day. In Q3 2019, the company lost $160 million… that’s 8X more than a year ago.
The company is investing millions into new farms and greenhouses spanning millions of square meters… most of which are simply unused.
In Q3 2019, Aurora Cannabis grew only 15,600 kilos of pot, which means it utilizes only 1/3 of its facilities. And as I mentioned before, it plans to expand 7X by 2020.
A Dirty Secret Behind “Strong Revenue”
And here’s the key…
If you look at Aurora Cannabis’s most recent financial report, you’ll see its revenue grew 52% in the last fiscal quarter, compared to the previous quarter.
That sounds good… but it’s hiding a dirty secret.
Aurora Cannabis is actually dumping part of its harvest into “wholesale,” which means it is selling it for cheap… according to a line buried deep in the company’s Q4 financials.
Last fiscal quarter, the company dumped $20 million worth of pot, a 869% increase from the previous quarter. It is doing this because there’s not enough demand from consumers.
I expect this trend to grow as pot companies continue to ramp up production and flood the market with more pot.
My recommendation: Stay away from Aurora Cannabis and other big pot producers. The pot party is over. There are better and safer ways to earn profit in the stock market.
Read the full article at https://www.google.com/search?q=aurora+stock&oq=aurora+stock&aqs=chrome..69i57j0l5.4778j0j8&sourceid=chrome&ie=UTF-8
