2021-02-16 05:53:35 ACB Aurora Cannabis
Tilray
02/16/21 02/1605:53 02/16/2105:53 | Aurora Cannabis shares have 100% downside by end of 2022, says GLJ ResearchGLJ Research analyst Gordon Johnson learned from speaking with the managers of the ETFMG Alternative Harvest ETF that no single security can comprise more than 10% of the index and 100% of the selling necessary to rebalance happens the day of the rebalancing. Under this backdrop, there are roughly 2.2M shares of Tilray (TLRY) that need to be sold and 2.3M shares of Aurora Cannabis (ACB) that need to be sold, Johnson tells investors in a research note. He believes "this overhang will continue to exert downward pressure" on both stock "until it is fully worked out." In addition, Aurora's fiscal Q2 results do not justify the stock "holding up at prior levels of ~$10/shr, much less the current price," says Johnson. He maintains a Sell rating on the shares with a $0 year-end 2022 price target. Aurora Cannabis
Tilray
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