counterparts are soaring high? Let me tell you the reasons why I am reluctant to own Aurora Cannabis stock.
The company won’t see a drastic jump until it invests in new, high-margin products — cannabis derivatives, in particular.
Rival Canopy Growth, for example, earned CA$10.5 million in revenue from derivative products alone in its third quarter of fiscal 2021.
Aurora launched a few derivatives in December 2019, including a range of cannabidiol products, and vape products.
Having failed to raise the necessary amount of capital through other means, Aurora has chosen to dilute its shares.
If Aurora doesn’t take any action soon, it may miss out on the early opportunities of this evolving segment.
beverage maker Constellation Brands has partnered with Canopy Growth, while tobacco company Altria Group holds a stake in Cronos Group, and HEXO also has a partnership deal with beverage company Molson Coors.
Despite the challenges of an evolving industry, most pot companies have a fire in them driving their future growth plans.
Failure to launch new products, sluggish revenue growth, and lack of progress or wise growth strategies under a new management team make it unlikely I will add Aurora Cannabis to my portfolio.