#7 - Aurora Cannabis (NASDAQ:ACB)
Aurora Cannabis (NYSE:ACB) was one of the shining stars when the cannabis bubble inflated in 2018. But the air went out of that bubble several years ago. And despite more acceptance for medicinal and recreational marijuana, the needle is not likely to move for cannabis stocks until marijuana is decriminalized throughout the United States.
Investors were hopeful that legalization would be a priority of the Biden administration. That hasn’t come to pass. And if the opposition party is successful at claiming one or both houses of Congress, it would appear that cannabis legalization will remain on the shelf.
And that’s not good news for shareholders who own ACB stock. The company’s revenue is declining, and they are moving further away from profitability. At some point, there may be a big story with Aurora Cannabis, but that day seems several years away, which means now is a good time to sell the stock.
About Aurora Cannabis
Aurora Cannabis Inc, together with its subsidiaries, produces, distributes, and sells cannabis and cannabis-derivative products in Canada and internationally. It operates through three segments: Canadian Cannabis, European Cannabis, and Plant Propagation. The company produces, distributes, and sells medical and consumer cannabis products in Canada.
Read More - Current Price
- $4.34
- Consensus Rating
- Buy
- Ratings Breakdown
- 1 Buy Ratings, 0 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- N/A
Investors can, and should, consider selling stocks at any time of year. But the end of the year is a particularly good time to think about selling for tax harvesting purposes. Selling some of your losers can help offset the capital gains you've made from your winners.
This serves as a good reminder. Selling a penny stock, doesn't mean that you have to say goodbye to them forever. But there are times when market conditions dictate that there are better places to invest your capital. Stocks don't announce when they're going to turn from bearish to bullish and vice versa. But sometimes you have to know when to not fight the trend.
Most importantly, investors need to consider their own risk tolerance. Penny stocks can test the nerve of the most seasoned investors. And penny stocks frequently don't receive the same analyst coverage that other stocks receive. This can make it tricky to perform your due diligence.
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