Things are certainly looking up for Canada-based Aurora Cannabis (ACB) as stocks posted steady growth over the last few months after experiencing a downfall in prices from its strong stock showing in October of last year.
Aurora Cannabis got a boost as global weed sales are projected to grow to $16.9 billion from $12.2 billion, this according to Arcview Market Research and BDS Analytics. This is largely attributed to growing demand from Canada, U.S., and the emergence of new customers from growing international markets.
Aurora Cannabis is in an excellent position to dominate the market with its massive production capacity giving it the flexibility to move to areas where demand is high. The company has also been steadily ramping up production from 120,000 kgs to 150,000 kgs. Part of Aurora Cannabis strategy includes aggressively pursuing growth opportunities in international markets such as the Czech Republic, Poland, Mexico, and the U.K.
Long Term Prospects for Aurora Cannabis
With growing demand both locally and globally, Aurora Cannabis – Canada’s largest producer with an estimated peak output of 700,000 kilos annually, makes an attractive option for long term investors. Based on its second-quarter operating results which showed growth in company earnings, the company is poised to post steady profitability, especially with growing market demands.
The company used the help of investors through the issuance of stocks to help increase its production capacity. However, with more than a billion shares of stocks, profits may not be attractive for small-time investors.
Aurora Cannabis stocks are comparatively cheaper compared to its main rivals, Canopy Growth (NYSE: CGC), Tilray (NASDAQ:TLRY), and Cronos Group (NASDAQ:CRON). After experiencing drops in stock values after reaching its highs last October, stock prices have been hovering in the $10 mark during the past few weeks.
It remains to be seen if Aurora Cannabis can hit its $12.52 high of October or even surpass it. However, with growing local and international demand couple with increasing company production, Aurora Cannabis remains to be an attractive prospect for investors.
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