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Way overvalued. Assets are worthless
Way overvalued. Cannabis margins are insane. They will collapse... companies will fail.
Cannabis is overvalued because of how easily it can be produced in large volumes at low costs.
A one acre field can produce enough cannabis for over one million smoking joints.
Cannabis can be produced for under $0.30/g and is being sold for as high as $10/g.
High competition combined with huge oversupply leads to lower prices.
Producers are willing to sell at lower prices.
A one acre field producing 500kg at a cost of $0.30/g can be sold at $1/g for a profit of $350,000.
Scale it up..
investorshub.advfn.com/boards/read_msg.aspx?message_id=153379160
Auroras billions of dollars in assets are worthless.
Overvalued. By the time any cannabis company is able to sell 500,000kg/year given demand constraints.. wholesale prices will have collapsed taking green gold margins with them.
Insiders made a killing..
The company [and ..] tried hard to keep the share price afloat. Worthless assets cant hide forever.
NYSE trade commencement:
newswire.ca/news-releases/aurora-cannabis-to-commence-trading-on-the-nyse-697904321.html
Oct 18, 2018
About Aurora
Headquartered in Edmonton, Alberta, Canada with funded capacity in excess of 500,000 kg per annum and sales and operations in 18 countries across five continents..
Way overvalued because of a greedy industry, company, and investors.
Margins on the commoditizable THC are insane. Was easy to project billions with construction of a few green houses.
The fundamentals of economics prevail.
Zero
Hey now shorts can make more money
Exactly. The assets are not only overvalued.. but worthless! Margins to collapse with the wholesale price of THC.
Way overvalued
ACB's ~200,000kg per year production is worth about a billion dollars. In decade it will be worth under 50M.
It would be a puzzle if they were worth something.. so puzzle solved! Worthless
Way overvalued supply, industry, company
Money laundering shell scheme
Hey, not really, but I think so
Looking at the balance sheets and market cap you could say this is undervalued.
But the fundamentals are flawed, future margins will collapse. Overvalued.
One variable is all it takes to bring down this business.
Agree cannabis oil is way overproduced. Dry cannabis is converted into oil to save space and to conceal this overproduction.
According to the latest market data, across Canada license holders had over 7 million units (bottles, containers, etc) of cannabis extracts in inventory while sales for the month totaled 500,000 units.
https://www.canada.ca/en/health-canada/services/drugs-medication/cannabis/research-data/market/extracts.html
Just the beginning for production..
Hundreds more LPs just coming online.
Way oversupplied, way overvalued.
Exactly. They wish they had a partnership.. No one wants to do any long term business with Aurora. Way toooo expensive. Overvalued.
The lack in retail stores is the only thing holding up retail prices.
Thousands of stores to open up - the price per gram will plummet.
Canada's pending +150,000kg monthly production vs the current 20,000kg/month demand....
How much higher can demand rise?
Well if it could rise to the supply of 150,000kg/month.. that's a lot of cannabis.
Almost 2 ounces per year for all 40M Canadains. Not going to happen.
Global supply to push way beyond these numbers. Asia, SA, Africa.. Canada is not the best for growing cannabis outdoors.
thousands of stores equals less consumer traffic per store.. combined with huge oversupply retail will have highly stocked shelves.
as low as $1/g will always be an option.
Aurora's assets are worthless with insane overhead and costs of production. costs exceeding $2/g? Garbage. Never will these high cost facilities operate at full capacity. It's not worth it. Upper management is clearly aware.
Would rather acquire fields at $0.20/g production costs than spend hundreds of millions for unprofitable Aurora assets. That's why many are looking to where it just makes more geographical sense to produce... not in Canada.
Assets worthless
Way overvalued. Assets cost billions - worth zero.
Toooo costly and inefficient to operate given future market conditions.
Check out one of the latest outdoor grow operations:
https://northernontario.ctvnews.ca/video?clipId=1693648&jwsource=cl
100 acres for 250,000 cannabis plants.
At a sale price of $5/g the field seen in the video has potential to do over $60M in revenue.
The field and assets seen in this video clearly cost nothing in comparison to Aurora's - but can potentially produce almost as much revenue as they do in a quarter.
Thousands more fields like this one to spring up all over Canada, US, and around the world over the next decades.
Margins are insane. Greed taking advantage of the price of an illegal product.
The PPG will collapse. Margins will follow.
Overvauled
The industry is changing quickly : ACB is way overvalued
Way overvalued. Worth zero
400 billion cups of coffee are consumed around the world every year.
The annual demand for THC would be 4,000,000 kilograms, if every single cup of coffee consumed was infused with a THC serving of 10 milligrams.
Picture the 450 million cups of coffee consumed in the United States every day infused with THC.. Can you imagine what people would be like?
The cannabis for extracting the 4,000,000 kilograms of THC could be grown outdoors over a dozen large farms spread across Canada.
The Canadian industry is growing exponentially in terms of annual production capacities.
How much THC is in Canada?
~295,000 kilograms according to the latest data:
- 197,000 kilograms of THC, cannabis extracts 1: 2019-09 - 196,852L @ average unit concentration of 1mg per ml.
- 78,000 kilograms of THC, dried cannabis 2: 2019-11 - 598,554kg @ average THC concentration of 10% per gram.
- 20,000 kilograms of THC, latest cannabis plant data 3: 2019-09 - 4,944,695 plants @ average 40g/plant @ average THC concentration of 10% per gram.
Still a little ways from the 4,000,000kg equivalent..
Licensed outdoor acreage (450 acres a/o 2019-11) will expand fast.. The latest indoor construction area (4.4M sqm) is four times greater than the current total growing area (1.4M sqm) 4.
Oversupply is current.
Lots of competitors.
Highly profitable.
Sales prices will fall.
Deadly for players in the industry with high costs of production, overhead, and debt.
Profitable and prosperous for others.
Way overvalued.
Market cap: $4B
How much is $4B?
All 40M Canadians buying an once of weed.
Way overvalued.
Not easy to run a company rather diagnose their failure.
'Easy' to see the many contributing factors leading to the death of Aurora.
Overvalued. What a pump run that was!
Aurora has been at it for years and now they are collapsing because of an unsustainable bussiness model from a lack of analysis into supply and demand of the global industry...
Delisted because they are no longer (never were) 'worth' billions, hundreds of millions...
It was simple. Now we face reality
It was simple, 'we will produce x kilograms and sell at market price'.
500,000kg @ sale $5/g cost $2/g
Profit = $1.5B
Canadian statistics shows the average monthly demand to be around 15,000kg. Even if the demand was 30,000kg/month (360,000kg/year).. all of Canada could have been supplied by Aurora.
Early on, company execs knew about oversupply issues and tricked investors into thinking the market was undersupplied.
Aurora limited their production capacities early on, they knew selling the funded annual capacity was going to be impossible and cant take cost of production with no sales on paper.
Now with the projected collapse of cannabis prices.. Most of these multi-million dollar cultivation facilities will be way to expensive to operate. Worthless.
RS OR ZERO?
Lenders (shareholders) funded hundreds of millions for development of worthless assets (high operational costs -> future commodization of cannabis).
Assets are worthless, debt is still high, shareholder value dropping on the daily (ACB worth $800M, $9B a/o April 2019), heading for zero?
Someone can get one hell of a discount.
No point. Worth zero
ACB worth zero.
Way overvalued.
Still way overvalued. Going to zero
Going to zero
Assets are worthless. Production costs way tooo high - not operations but unsustainable production methods and oversophistocated infrastructure. Aurora's dream isn't in the industry's future. Hundreds of millions in infrastructure.. all extremely overvalued and worthless.
Going to zero.
Way overvalued. good luck to all
In Canada retail prices are collapsing fast.
The government operated retail stores in Quebec (SQDC) sell an ounce for $125 ($4.50/g).
https://www.sqdc.ca/en-CA/p-os210/697238112225-P/697238112225