Good luck
Aurora Cannabis Aurora Cannabis (NYSE:ACB), Canada's projected leading pot producer, looks to have one of the highest probabilities of taking a writedown among all marijuana stocks. That's because its capacity expansion strategy has been more reliant on acquisitions than its peers. Last year, it gobbled up MedReleaf for $2 billion, CanniMed Therapeutics for about $850 million, and ICC Labs for $200 million, with a $130 million purchase of Whistler Medical Marijuana earlier this year. All told, Aurora has made 15 acquisitions since August 2016. Although these purchases have pushed Aurora's projected output to the front of the pack, it's come with a price. The company ended the fiscal second quarter (Dec. 31, 2018) with CA$3.06 billion in goodwill on its balance sheet, representing 63% of the company's total assets. Aurora will, presumably, recoup some of this value (especially from MedReleaf) after it brings acquired cultivation capacity online. But recovering more than CA$3 billion in premium is going to be difficult for any company, let alone one in a relatively new industry that's facing supply chain challenges in its home market. The next couple of quarters will be particularly telling for Aurora. Ideally, investors would like to see a decline in goodwill as a percentage of total assets in the company's fiscal third quarter report, which will be released later this week. But if history proves anything, nothing works "ideally" with Aurora Cannabis.