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The Bears May be Out of Ammunition… Finally. #Aurora | $ACB
Is it possible that the closet has been fully emptied and there’s nothing left for the bears to focus on? In layman’s terms, there is basically nothing new that could surface to cause continued fear and panic selling amongst retail investors. Aurora Cannabis Inc (NYSE: ACB) has laid it all on the table in recent weeks; which in cumulative has culminated in, CEO, Terry Booth’s resignation. Last week’s earning went pretty much as expected. The results were very poor, but what was encouraging was that the company’s held nothing back in regards to commentary and willingness to tackle the naysayers head on. The culling of 500 jobs is truly unfortunate for those affected, but this strategic effort shows that the board is trying to bring both stability and accountability to the forefront in all future plans.
Despite all the upheavals in ACB, combined with the horrendous decline in the stock price; it is somewhat concerning that Nelson Peltz has remained tight lipped. Mr. Peltz was brought into the company as a strategic advisor and was greeted with a $20 million stock option. The aforementioned was seen as the man that could open doors to partnerships with larger consumer package companies, without handing over major leverage, like CGC did to Constellation. It is quite difficult to see what Peltz has achieved yet; apart from, possibly being responsible for the departure of CEO Booth, but maybe that was the first step in putting the ‘For Sale’ sign outside of ACB headquarters.
The company’s stock is currently trading at 85% discount, as compared to when Peltz joined the embatttered company. The question that we are currently pondering is, ‘Will Peltz eventually jump ship, or will he make some of his time tested magic happen again?’. With the departure of Booth, the path to becoming an acquisition is now clear. Given the dire state of ACB‘s finances, investors should rejoice at the opportunity to cash out.
Let’s First Take A Look at the 1-Day Chart for Some Hint, As To Where $ACB Could Be Heading in the Days and Weeks to Come.
Things May Not Be Just as Bad as they Seem. Let’s Consider the Following, When Analyzing $ACB:
- Foremost, volume is higher on up days and lower on down days; which signal that sellers are becoming exhausted.
- Bullish divergence exists on the RSI.
- Stochastic has reset and has now crossed bullishly.
- $2.00 is a major price-level that the bulls need to take control off.
ACB’s Weekly Chart puts its Current Price Action into Perspective.
It is pretty certain that those previous highs may never be seen again, but a move above the Point of Control (POC) would be a very positive step for the stock. Let’s evaluate the current situation:
- Below the $1.41 price-level, there is practically no historical price action, therefore sellers should be very limited.
- The stochastic has bottomed and has crossed bullishly.
- The histogram is front running price, having already crossed above the zero line and turned green.
- It is quite possible that ACB could consolidate between the $2.04 and $1.04 price range for some time; so as to build a base and entice new investors.
The Final Verdict for #AuroraCannabis.
In summary, things may not as bad as they seem for ACB. For as long as Nelson Peltz remains within the company, there is hope that an accomplished CEO will be put in place. Finally, there is also the chance of a new partnership(s), as well as the possibility of waking up to breaking news: that a bid has been placed for the company.