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If ACB's Management really did something wrong - then there would be a bunch of Legal Firms trying to sue them right now.
Are there a bunch of Legal Firms suing ACB right now?
Oh...wait a minute...there are!!
And these Law Firms have a ton Press Releases, Interviews, and YouTube Videos to use as AMMO.
If Cam was talking-up ACB in an Interview and investors RELIED on what he said as a basis for their investments - but then it turns out that Cam was LYING (or at least not speaking the truth) - then I can see the basis for the Law Suits.
Personally, when I invest, I ignore the good news and focus on the bad news.
Then if I can accept the bad news - then I invest.
But IGNORING the bad news is never a good idea IMO.
If ACB bounces back to $10/Share - then that will be the cup.
Then the handle will start forming around $11/Share.
Other than that - when I look at the chart - all I see is a big MUD SLIDE starting in March 2019.
Is "MUD SLIDE" a graph technical term? If not, I am claiming it. LOL!!
This is all the news I have gotten in my ACB News Feed for the past 2 days (see list below).
Please notice the dates and times. This is recent news.
CLASS ACTION UPDATE for ACB, MHK and PTLA: Levi & Korsinsky, LLP Reminds Investors of Class Actions on Behalf of Shareholders
Dow Jones 1/21/20 10:46 AM ET
ACB FINAL DEADLINE TODAY: ROSEN, A TOP RANKED LAW FIRM, Reminds Aurora Cannabis Inc. Investors of Important Tuesday Deadline in Securities Class Action; Encourages Investors with Losses in Excess of $1MM to Contact the Firm -- ACB
BusinessWire 1/21/20 9:42 AM ET
Thinking about buying stock in Aurora Cannabis, Walt Disney, FuelCell Energy, LYFT, or Mastercard?
PR Newswire 1/21/20 9:31 AM ET
SHAREHOLDER ALERT: CGC ET ACB: The Law Offices of Vincent Wong Reminds Investors of Important Class Action Deadlines
Dow Jones 1/20/20 12:30 PM ET
The Gross Law Firm Announces Class Actions on Behalf of Shareholders of ET, ACB and MHK
Dow Jones 1/20/20 10:46 AM ET
TUESDAY DEADLINE ALERT: The Schall Law Firm Announces the Filing of a Class Action Lawsuit Against Aurora Cannabis Inc. and Encourages Investors with Losses in Excess of $100,000 to Contact the Firm
BusinessWire 1/20/20 10:39 AM ET
FINAL DEADLINE JANUARY 21: The Schall Law Firm Announces the Filing of a Class Action Lawsuit Against Aurora Cannabis Inc. and Encourages Investors with Losses in Excess of $750,000 to Contact the Firm
Dow Jones 1/20/20 12:06 AM ET
CLASS ACTION UPDATE for REAL, ACB and FCAU: Levi & Korsinsky, LLP Reminds Investors of Class Actions on Behalf of Shareholders
Dow Jones 1/19/20 10:27 AM ET
3-Day Deadline Alert: The Schall Law Firm Announces the Filing of a Class Action Lawsuit Against Aurora Cannabis Inc. and Encourages Investors with Losses in Excess of $100,000 to Contact the Firm
Even if the Lawsuits have no technical merit - they are still law suits.
And defending lawsuits like this could cost the lots of CASH $$$ in legal fees.
And even when you win lawsuit - you still were sued.
So the lawsuits are bad press while the shorts are shorting - so they are not coming at a good time.
Growth Companies like ACB need "good press" to keep them growing - and ACB's Management has been awful quite since Cam left.
"Legal" Weed can become "Black Market" Weed very easily.
Right now, people are buying car loads of Cannabis in Colorado and California LEGALLY - then they are driving to illegal states to sell it.
It is no different than Alcohol Prohibition. People used to drive up to Canada and load their cars with Legal Canadian Whiskey and then sell it on the US Black Market.
So a person in an "Illegal" State could actually be smoking weed grown legally in another state.
And this "legal Weed" could cut-into the business of the Black Market Growers in the illegal states.
Good Article...
https://www.bullishcharts.com/cannabis/auroracannabis-dont-get-caught-in-the-middle-of-this-fight-acb/
The Longs vs: The Shorts.
An Epic Battle brewing in 2020!!
The Long-Longs love ACB - but the Shorts have had the Technicals on their side so far.
Who will win?
Awesome post! Well said!!
Trend -
From the graph you posted - it looks like ACB needs to hold $2.13 and above to break-out of the upper Trend Line.
Is this correct?
Thanks RZ!
MX was getting "attacked" this morning also for just mentioning that $1 price target set by some analysts.
So I am not alone.
I just posted about the Law Suits this morning as a reminder that the deadlines to file are approaching. It showed up in my ACB News this morning.
But anyway, I hope HEXO's Dilution doesn't completely kill the mini-rally we had this week.
And I hope that one of my other Canadian Cannabis Stocks buy that 1,000,000 Grow Facility for $17M from ACB. That Facility is a good deal for someone that knows how to use it.
It looks like ACB might be down today because HEXO DILUTED its shareholders again (see links).
When OGI posted a great ER earlier this week - all the Cannabis Stocks went up.
But when the Canadian Cannabis Companies continually DILUTE - that makes investors think twice about their positions.
When one Canadian Cannabis Company does something (good or bad) - then all seem to be effected.
But this can be used to an advantage.
For Example: OGI (the company with the good ER) is on sale today.
https://www.fool.com/investing/2020/01/17/stock-market-news-marijuana-stocks-fall-on-hexo-of.aspx
https://www.fool.com/news/2020/01/17/hexo-floats-20-million-share-issue-stock-sinks.aspx
Actually, I wish I was a shorter.
OMG! Are you kidding me?
Just look at the chart.
If I had shorted this puppy at $10 - that would be BANK $$$$.
To the reasonable people that are listening: There is NOTHING "wrong" with shorting stocks.
In fact, stocks usually go down a lot faster than they go up.
Don't believe me?
Just look at how fast ACB went from $10 to $1.50 (10 months).
Now just watch how fast ACB goes from $1.50 to $10 (time will tell).
Actually, it is the Long-Longs that keep posting the same things over-and-over.
This morning, my ACB News Board was full of all kinds of Shareholder Law Suit DEADLINE NOTICES - so I thought I would share that NEW NEWS with the board. If you look closely - all those notices were dated TODAY.
Back at you. Now the question is: Why are you on this board?
To make money? LOL!!
I understand that. But when shorts are in a "panic" to cover - that usually means lots of buying - and lots of buying makes a stock go up - not down.
And ACB is RED today.
If the shorts are covering in a panic - then why is ACB RED today?
Oh sorry.
Correction: I should have addressed my FRIENDLY REMINDER concerning the lawsuit deadlines to all the Retail Investors that LISTENED to the Long-Long's BS - and lost money when ACB lost 85% of it's value in 2019.
The Long-Longs can IGNORE my posts concerning the Lawsuit Deadlines (just like they IGNORE everything else).
Just an FYI.
For the Long-Longs, it looks like the time period to join the multiple law suits is starting to expire.
So get your claims in soon!!
The Gross Law Firm Announces Class Actions on Behalf of Shareholders of WSG, BAX and ACB
Dow Jones 1/17/20 10:22 AM ET
The Klein Law Firm Reminds Investors of Class Actions on Behalf of Shareholders of CGC, ACB and HEXO
Dow Jones 1/16/20 9:48 PM ET
Robbins Geller Rudman & Dowd LLP Files Class Action Suit Against Aurora Cannabis Inc.
BusinessWire 1/16/20 5:48 PM ET
ACB FINAL DEADLINE: ROSEN, A GLOBALLY RECOGNIZED LAW FIRM, Reminds Aurora Cannabis Inc. Investors of Important Tuesday Deadline in Securities Class Action; Expanded Class Period -- ACB
The same people that were bidding the stock up all week will be the same people that short it down.
There is going to be Profit Taking from this week's run-up.
The only question is: Will a lot of people take profits and then cause investors to grab what profits they can (while the getting is good)?
It is going to be interesting to see if ACB can hold $2.
ACB should be trimming Assets that they don't intend to use - and they are. This is a good thing for ACB.
But my point was: Someone can buy 1,000,000 Square Feet of Grow Capacity for $17 Million.
In the right hands - and with the right genetics - someone could turn that old MedRelief Facility into a real Money Maker $$$$.
I'm going to try and keep an eye on that sale because I might invest in the Company that buys it.
It appears that buying used Grow Facilities and Grow Equipment is a lot like buying a Used Car.
As soon as you drive it off the lot - it is worth about 1/2 of what you paid for it.
So someone has the opportunity to either get into the Cannabis Business or expand their existing business on the cheap.
I bet all the small Grow Houses in Canada are seriously looking at buying this Asset.
If ACB was smart - they should consider leasing it (triple net lease) and have the renter update the facility for them.
ACB actually COULD go to $1.
The Analysts are saying ACB COULD (key word here) go to $1. They are not saying it WILL.
But considering ACB's Decline and the fact that it hit $1.50 just 4 days ago - then going to $1 is not out of the realm of possibility.
It all depends on ACB's Performance (as it should)...
https://seekingalpha.com/article/4317410-aurora-cannabis-legitimate-1-target?dr=1&utm_medium=email&utm_source=seeking_alpha
I like this part of the article:
The company is selling the Exeter facility with over 1 million square feet and 22 acres for C$17 million along with another 95-acre of land for C$2 million. The company to buy is the one buying these facilities on the cheap for the eventual ramp in cannabis sales.
I tend to agree with this. If a start-up Cannabis Company can buy the Exeter Facilities for the C$17 Million asking price (or less) - then they could make some serious money because they are getting their grow facility for a relatively cheap price.
Not all Cannabis Growers sell to the Medical Market using ACB's high standards of production - so a Recreational Cannabis Grower could make the Exeter Facilities very profitable.
MX -
Sounds great!
I also agree that a rebound will happen (I mean, they are selling Cannabis) but I'm not sure when or how. So I'm still on the trade around a Core Position approach.
As long as we're making $$$$$ - we're doing it right!!
I really think that everyone knows that the Goodwill on ACB's Balance Sheet is BS anyway.
Any way you look at it - ACB overpaid for the MedRelief and other acquisitions - and the overpayment is still on ACB's Balance Sheet as Goodwill.
That is water under the bridge though.
If ACB has to write-off $3 Billion of GW - I don't think it will come as a complete surprise to anyone.
MX - Nice work!!
I don't buy options very often (unless they are puts - in order to protect a gain I have).
The only problem I have with options is: They Expire.
I can't handle it when the milk in my fridge expires - so I'm not geared to be an options trader. LOL!!
I'm worried that investors are mentally tainted with ACB's volatility.
It's been a nice run since Monday - but if the investors are tainted - then they will "head for the exits" if a series of down-ticks hits.
The MM's know it won't take much to trip people's Stock Losses on this stock.
Did anyone notice how ACB ticked down to $1.50 on Monday morning before it took off like a rocket?
IMO - That is because the MM's were tripping peoples Stop Losses to drive the price lower and then they bought in.
Pretty nifty work.
As long as you are making money - you are doing it right.
There is no such thing as a "bad decision" when you made money.
"Bad Decisions" are when you lose money.
I think we need to take the ZERO Price Target set by some analysts in context.
IF ACB continues on it's current trajectory - then yes, it could go BK.
That is a possibility.
But the key words are: "Current Trajectory".
It is just like personal finances. If you lose your job and you spend like crazy - then eventually - you will go BK. It is just a matter of time.
However, if ACB's Management changes their "Current Trajectory" - the the ZERO Bid Analysis isn't very valid.
It is an understatement to say that the future of ACB is in ACB's Management's Hands.
They need to do a deal to raise capital (without diluting the poor shareholders any further) and they need to get their CASH FLOWS flowing in a favorable direction.
We're talking about Cannabis and ACB here - therefore - ANYTHING is possible.
I really didn't think ACB would ever retrench back to $1.50.
It is hard to believe - but it did just 2 days ago.
But there is a big difference between "possible" and "likely".
I wish I knew what direction ACB was headed - but I don't. I have no idea what drove today's price action.
The only real news was OGI's ER Beat. But this Sector has been beaten down so badly - maybe OGI's ER Beat was all that was needed.
If more Cannabis Companies have ER Beats - this Sector could catch fire (again). That is why I watch it everyday.
Yep. I keep saying it: There is never anything wrong with Taking Profits.
Personally, I like to sell (aka: Dump) before anyone else does.
I don't always hit the exact top - but I do make $$$$.
Home Runs are nice when you can get them. Everyone loves a good Home Run - but Base Hits and RBI's win ballgames.
"Buy into Weakness - Sell into Strength" is an old saying.
I think the Long-Longs have mastered "Buying into Weakness" because ACB has been weak for a long time.
But the Long-Longs haven't figured-out that "Selling into Strength" part.
Zero is definitely an extreme price target.
However, I am always concerned when analysts talk that way.
A Company can have great Earnings, great infrastructure, great business model, etc - and still go BK.
Going BK is all about Cash and Cash Flows. It has very little to do with anything else.
If Aurora keeps spending more Cash than it is taking-in, then it's no different than a person's personal finances.
If a person loses his/her job - the first thing an intelligent person does is quit spending as much.
Same is true with Aurora. From the last ER - it appears that they curtailed their capital spending until their Cash Inflows are greater than their Outflows.
I really hope today's rally for the Canadian Cannabis Sector was due to OGI's ER Beat - and not just a short squeeze.
But one thing is for certain - this whole Sector moves together.
I have not seen one day when the whole sector did not move in unison.
It's good to see ACB up today - but I am really happy because I own some OGI Shares.
Lets hope OGI's ER Beat is the sign of things to come!!!!
Also, if ACB does go back to $10 - the chart will be the craziest chart I've seen in a long while.
A true "Roller Coaster" Ride.
But time will tell.
2020 is going to be an interesting year for the Cannabis Sector.
And we are only 15 days into the New Year.
Today's run-up was great! I hope it keeps it up for the Long-Longs.
But when I look at the 1 year chart on ACB - it still looks UGLY (all caps UGLY).
That said, OCI's ER Beat was bullish.
The Cannabis Sector needs more Earnings Beats so the shorts have to think twice before shorting a Cannabis Stock again.
The decline since March was too easy for the shorts. So lets hope they get caught in some major short squeezes that we can profit from.
If the BIG Players (ACB, Canopy, etc) can post ER Beats like OGI did - then that could be the "game changer" this sector has been waiting for.
It all comes down to the numbers $$$$$$$.
Good ER - Stock goes up.
Bad ER - Stock goes down.
It's that simple sometimes.
Making money is never easy. And I'm not sure it is suppose to be.
But stock trading is not a matter of being "all in" or "all out".
For example: If you own 10,000 shares - you can sell 1,000 when they are in the green and take profits (you might need this for a rainy day if ACB tanks again).
When a speculative stock (like ACB) runs-up on no new news - there is usually profit taking soon after.
I mean, what more could a trader want than a 12% gain for 1 days investment?
To put things in perspective: Most stocks don't return 12% in a year.
This up-tick might hold - but then again - it might not.
It didn't take long for the Positive Seeking Alpha Articles to come-out.
Here is the latest:
https://seekingalpha.com/news/3532102-big-day-for-pot-names-after-organigram-results?dr=1&utm_medium=email&utm_source=seeking_alpha#email_link
Personally, I think this is all a big ploy to get the Retail Investor's MONEY $$$$.
Today is the PUMP - but always be leery of the DUMP.
Smart money gets in first - and out first. Everyone else is a bag holder.
Don't be a bag holder.
It's been a rough road for everyone long in the Cannabis Sector.
The Shorts have ruled this Sector since March - AND they are still out there. Actually, they are always out there.
Hopefully, this is the beginning of a Bull Run and not just a Short Squeeze.
But right now, I am betting on a Short Squeeze.
Taking Profits on some shares is always a prudent move.
Yep!! I like the way you are thinking!! Trade around a Core Position.
Buy a little - sell a little.
It is not an "all or nothing" game.
My VFF is up 18%!!
WTF? It's like someone threw a light switch and all of the Cannabis Stocks are up again all of a sudden.
It can't be just the OCI ER. They only did $25M in Revenues (but still beat Estimates).
I'm thinking: SHORT SQUEEZE. That could be the answer.
If it is: Now is the time to BUY and really stick it to those shorties.
If this continues, we'll probably start seeing a bunch of Seeking Alpha and Motley Fool Articles come-out in the upcoming days talking about how great ACB is...LOL!!
I am not assuming $1.50 was the bottom. Nor am I assuming this run is going to continue.
Don't get me wrong - I hope it goes straight back to $10.
BUT, I know better.
The only news out today was OCI's Earnings and they did well. So I think it is giving the rest of the Sector a boost today.
But I think we are still very far from calling this Bull Territory.
Yep!
Now just have to keep an eye on it.
The key for me is being the first to sell (right before everyone else does).
Maximize gains - and minimize downside.
Not many stocks go up 10% in one morning.
The Cannabis Sector is fun when it is going up!!
Lets hope this is not another head-fake from the shorties. (Buyers always beware).
All of the Canadian Cannabis Stocks have been "reset"...so who knows what will happen next.