Replies to post #9434 on Aurora Cannabis Inc (ACB)

[Salomon]

I think it’s a good strategy to take short positions on an emerging market that hasn’t fully established itself. They’re bound to be riddled with volatility.

End of 2018, through 2019 will build stability and consistency in the value of the stock.

[G MKE]

Hard to judge value with the high rate of growth in the industry and new investment focus with new investment products. My focus is long term. Is apple worth its market cap???

Certainly a gamble to short. Looks like lakewood's shorts did not work so good last year as noted in the article.

"Bozza said that Lakewood's net return for 2017 was 8.3 percent with "nearly everything" working on the long side. The firm's shorts were a bit more challenged."

[UnderOath-KY]

I dont even get that statement? we should all move to Canada to grow pot? its not easy doing what these growers have accomplished.

[crabclamjohn]

He says "you stepped in gold on this one!"

[Rule_62]

Two problems with the hedge fund article that jump out at me immediately:

1. The article states the hedge fund shows a short position for Aurora and Canopy as of their Q4 newsletter. Depending WHEN in Q4 they established those short positions, they are most likely still in some stage of serious hurt at the moment.

2. The article focuses on the lack of access to the California market as a partial justification for a short position. That's all well and fine, but negating/dismissing the rest of the world market is a serious oversight.

That said, anyone paying attention to trends on a daily chart has to notice the decline of Canopy and Aphria since Jan 10th. Other than the initial reaction/correction from which it's since recovered, Aurora has mostly resisted that downward pressure until the past few days, likely due to ongoing developments.