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e growth internationally.Aurora is already #1 in Germany and has also signed an agreement with the Health Ministry of Luxembourg. Luxembourg has also recently legalized cannabis for medical usage.The US is also a potentially big market for Aurora just next door and but the fact that in some states marijuana is still considered illegal makes it difficult for full steam expansion. However, I believe it will be just a matter of time for a complete rollout.<h1 id="ca83">Huge Production</h1>Aurora does not want to be caught empty-handed when demand explodes and is setting up a huge number of producing facilities. More exactly 11 facilities producing more than 500.000Kg by 2020.The number is impressive looking at the fact that recent quarters production was around 25.000Kg. As you can see there will be a huge investment in increasing production to massive numbers.Aurora believes we are talking of a $200 billion market so to be the market leader, it will need to set the tone in terms of production.The risk here is if the demand is not as high as anticipated which can potentially lead to lower margins and excess of supply. That is the catch, right?<h1 id="0eb1">Looking at the stock chart!</h1>Technically we are hitting a resistance line if we ca

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n call it like that of $8. Currently trading at$ 7,75 on today close, we are getting away from the previous big support at around the $5 level.<figure id="44cf"><img src="https://cdn-images-1.readmedium.com/v2/resize:fit:800/1*3GjXik6lqXlYXbd33XbbYg.png"><figcaption>Source: Finviz</figcaption></figure>Current price is at -40% from its 52week high and 100% more than its 52week low. So definitely there is a huge potential for gains still!But prepare for volatility!Personally, I would not buy now and would wait to see its reaction to the resistance level at 8. Would also look to the next pullback to confirm the uptrend. Missed out on the first pullback so prefer to be cautious here before entering.Looking to how much it can potentially go down, I rather put my money in something else at the moment.I do believe in Aurora for the long term and will keep an eye on the news for an entry point.<h2 id="960c">Call to Action</h2>If you liked this article be sure to leave your comment below and follow me on Medium. I usually post about saving tips, investing and a bit of my experience as an expat in Europe.See ya!Disclaimer: I am not a financial advisor. Always do your own research when investing in stocks.</article></body>

Is Aurora stock a buy?

My view for the week…

Aurora Cannabis is one of the hottest stocks at the moment! Let’s see why…

Some months ago the medical cannabis was legalized in Canada 2018 and other countries followed. Some investors are then very optimistic about the growth of the sector.

The snowball effect of more countries following Canada can be a unique opportunity to explore this billion dollar market.

Aurora reported in the last quarter that practically half of their revenue is already coming from the medical use of cannabis. Taking into account that we have are just a few months in after legalization this is a huge number.

Definitely surprising!

How is Aurora positioning for growth?

From the news we have been getting, Aurora is betting hard on expansion. Being the largest producer in Canada, Aurora Cannabis is setting the stage for future growth internationally.

Aurora is already #1 in Germany and has also signed an agreement with the Health Ministry of Luxembourg. Luxembourg has also recently legalized cannabis for medical usage.

The US is also a potentially big market for Aurora just next door and but the fact that in some states marijuana is still considered illegal makes it difficult for full steam expansion. However, I believe it will be just a matter of time for a complete rollout.

Huge Production

Aurora does not want to be caught empty-handed when demand explodes and is setting up a huge number of producing facilities. More exactly 11 facilities producing more than 500.000Kg by 2020.

The number is impressive looking at the fact that recent quarters production was around 25.000Kg. As you can see there will be a huge investment in increasing production to massive numbers.

Aurora believes we are talking of a $200 billion market so to be the market leader, it will need to set the tone in terms of production.

The risk here is if the demand is not as high as anticipated which can potentially lead to lower margins and excess of supply. That is the catch, right?

Looking at the stock chart!

Technically we are hitting a resistance line if we can call it like that of $8. Currently trading at $7,75 on today close, we are getting away from the previous big support at around the $5 level.

Current price is at -40% from its 52week high and 100% more than its 52week low. So definitely there is a huge potential for gains still!

But prepare for volatility!

Personally, I would not buy now and would wait to see its reaction to the resistance level at 8. Would also look to the next pullback to confirm the uptrend. Missed out on the first pullback so prefer to be cautious here before entering.

Looking to how much it can potentially go down, I rather put my money in something else at the moment.

I do believe in Aurora for the long term and will keep an eye on the news for an entry point.

Call to Action

If you liked this article be sure to leave your comment below and follow me on Medium. I usually post about saving tips, investing and a bit of my experience as an expat in Europe.

See ya!

Disclaimer: I am not a financial advisor. Always do your own research when investing in stocks.