How low can the marijuana stock go before it moves higher? Aurora Cannabis inc's suffering continues with its Canadian share price closing at C$1.56 after hitting C$1.53 – a new record low. The pot firm is struggling with financial issues, falling sales, impairment charges. While all the news came out in February, the stock price continued suffering in March.
The broader market is also crashing due to the coronavirus crisis and it significant economic fallout. Equities and commodities are falling across the board and the massive sell-off in oil prices is also having an impact on Aurora.
After Russia refused to extend and deepen the deal to limit oil production – in order to keep prices higher – Saudi Arabia decided to retaliate and strike back by ramping up output and announcing discounts. Petrol prices collapsed and so did the Canadian dollar.
The fall of the loonie against the US dollar makes ACB's American stock price closer to one US dollar. If shares fall below $1 and stay there for a month, the New York Stock Exchange may delist it. In this case, the management at the Edmonton-based firm may decide to do a reverse split – merging two or more stocks into one – thus avoiding this status. However, that would mean admitting that the companies revenues and sales are unlikely to increase.
At the time of writing, NYSE: ACB is worth US$1.17 – getting dangerously close to penny-stock status.
However, such a fall may also serve as a sign for bargain-seekers to jump on the share and push it higher.
Aurora Cannabis Stock Price
The Relative Strength Indexes on the four-hour and the daily chart are below 30 – indicating oversold conditions that imply an upside correction. The levels to watch to the upside are C$1.90 and C$2.40. Support is at C$1.50.
