The cannabis industry is growing at a torrid clip. 166 billion in annual sales. One cannabis company, Aurora Cannabis (NYSE: ACB) is specially well positioned to capture a substantial part of the industry’s earnings in the arriving decade. Continue reading to find out more about it. Image source: Getty Images. Aurora Cannabis’ peak production capacity is unmatched. Aurora is on the right track to produce more than 625,000 kilograms of cannabis annually by 2020. Among rival producers, only Canopy Growth (NYSE: CGC) is apparently on track to produce at least 500,000 kilograms during this time period.
Aurora’s superior production capacity should provide it with powerful scale advantages over its smaller competition. By spreading its costs over a larger sales foundation, Aurora should be able to produce industry-leading profit margins over time. Moreover, being a low-cost manufacturer should help Aurora weather any near-term oversupply issues should its home market of Canada become saturated. If a business shakeout occurs, Aurora is likely to be one of the last cannabis suppliers standing.
In addition to top-production potential, Aurora Cannabis also leads the industry in terms of its functional presence in marketplaces outside Canada. Aurora has a presence in 25 countries. Its closest competitor, Canopy Growth, has operations in mere 16 countries. Aurora Cannabis’ geographic footprint is unrivaled among weed manufacturers. Image source: Getty Images. As such, Aurora has a leg up on the competition when it comes to getting global market share, especially in the medical weed market, which is a section of focus for the company. That’s important, as the international cannabis market is projected to become multiple times larger than that of Canada in the years ahead. At What Price Is Aurora Cannabis Worth Buying?
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Aurora is also the probably of the major cannabis makers to remain independent. 1.8 billion, respectively, Aurora has so resisted selling a sizable equity stake to a larger company much. Should Canopy Growth and Cronos Group be acquired, investors may likely enjoy sizable gains from today’s prices. But also for investors wanting to profit from the entirety of the cannabis industry’s explosive growth over another decade, Aurora Cannabis is the stock to buy.
Foreign market ETFs: Foreign market ETFs can take a container of shares that monitor a foreign exchange like the Nikkei in Japan or the FTSE in the U.K. Inverse ETFs: These types of ETFs are designed to return the opposite of what the root-market index comes back. This presents an alternative solution to short-selling an ETF, which can be more risky because of the unlimited downside of short-selling. Short-selling is when you sell a stock first (by borrowing stocks from a stock broker) with the program to buy it back at a lesser price later. Actively managed ETFs: A fund manager actively manages the container of stocks so that they can outperform the fundamental index.
These ETFs generally have much higher fees and don’t always beat the market index. Leveraged ETFs: Made to return a multiple of the index it’s tracking. Leveraged ETFs sound appealing certainly. These ETFs often use debt and other financial instruments to reduce the quantity of capital had a need to invest in an index, achieving the same returns with less cash invested thus.
If the long-term tendency in the currency markets is for shares to increase in value, buying an ETF with 2x or 3x leverage would theoretically return two or three times as much. Unfortunately, these ETFs do a far better job tracking short-term, day-to-day results than they are doing with long-term results.