ACB Aurora Cannabis up over 60% to tangible book value level
ACB along with other cannabis stocks are up this month on news that marijuana may be reduced down to a lower schedule level.
News headline : "On Tuesday, August 29, the U.S. Department of Health and Human Services (HHS) in a historic move officially recommended cannabis' controlled substance classification be changed from Schedule I to Schedule III ".
This was the catalyst that moved the cannabis stocks, including the other stock I cover GTBIF.
Unlike GTBIF (green thumb industries), ACB is not positive cash flow and is only interesting because of its tangible book value from the balance sheet. Tangible book value is assets minus liabilities minus intangibles, so the more "hard" real assets.
Up until last week, ACB was trading at around half its net tangible book value on the balance sheet. Because investors were pricing ACB as a wealth destroyer, they were discounting the value of the business to less than the net assets on the balance sheet.
Well today things changed.
The stock is up between 60-70% during live trading and even surpassed the net tangible book value, (shown on the chart as the yellow line).
It is good habit to always check to see the net tangible book value of your stocks to see if its cheaper or more expensive than you think. Look for "Tangible book value per share" on your trading view platform, one of the great many features here on Trading View.
Cheers.
News headline : "On Tuesday, August 29, the U.S. Department of Health and Human Services (HHS) in a historic move officially recommended cannabis' controlled substance classification be changed from Schedule I to Schedule III ".
This was the catalyst that moved the cannabis stocks, including the other stock I cover GTBIF.
Unlike GTBIF (green thumb industries), ACB is not positive cash flow and is only interesting because of its tangible book value from the balance sheet. Tangible book value is assets minus liabilities minus intangibles, so the more "hard" real assets.
Up until last week, ACB was trading at around half its net tangible book value on the balance sheet. Because investors were pricing ACB as a wealth destroyer, they were discounting the value of the business to less than the net assets on the balance sheet.
Well today things changed.
The stock is up between 60-70% during live trading and even surpassed the net tangible book value, (shown on the chart as the yellow line).
It is good habit to always check to see the net tangible book value of your stocks to see if its cheaper or more expensive than you think. Look for "Tangible book value per share" on your trading view platform, one of the great many features here on Trading View.
Cheers.
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