Hyped cannabis stock ACB finally worth a buy

After a long downward slide, Aurora Cannabis has finally hit a support critical level around $2.50. With the stock finally looking a little undervalued and a large recent earnings beat under its belt, ACB should rally higher. Call buyers are targeting $5.00 per share within two months, with over 40,000 call options located at that price. Cannabis is a hype sector, so when investor interest picks back up, it could quickly turn red hot. Several times in the last few years, ACB has hit over $10 per share.

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Instead of taking the 8% profit when I had the chance, I've been hanging onto this thinking it's a long-term trade. In the last couple days, however, a couple extremely bearish analyst reports have come out suggesting that the company is burning too much cash and that the stock may go to zero. I went ahead and exited for a 2% loss this morning.

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There's more call-buying happening today as ACB attempts a double bottom. The balance of options trading is surprisingly bullish given how negative the analyst coverage was this week.

ChristopherCarrollSmith

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ChristopherCarrollSmith

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