Aurora Cannabis stock unlikely to enjoy new highs soon
    
    
      
    
  

  
    
        Our Canadian pharmaceuticals
        industry indicator
        peaked at 1,800% on November 18th.
        At that point there 18 stocks
        in the group with key insider buying
        for every one stock with
        key selling over the previous 60 days.
        A peak in our indicator
        represents our measure of
        peak insider buying and
        such peaks often happen
        near stock price lows.
        As it turns out,
        the S&P/TSX Pharmaceuticals Index
        bottomed on the same day.
        Many Canadian cannabis stocks are
        in the pharmaceuticals industry so it was not
        a surprise to see the Horizons Marijuana
        Life Sciences Index ETF put
        in a 52-week low of $8.34 the next day.
        Given that our pharmaceutical
        indicator has peaked,
        the cannabis group looks set to
        enjoy at least a short-term rally.
        However, keep a close eye on the indicator.
        Once it bottoms at or
        below 50% like it did in March of this year,
        it will be signalling the
        rally is likely near an end.
        While we have a
        broad short-term bullish signal
        for Canadian cannabis stocks,
        based on our INK Edge outlook rankings,
        we expect some of the big Canadian growers
        to be among the laggards.
        That includes Aurora Cannabis.
        It has a rainy outlook thanks in part to
        some insider selling near share price lows.
        For those playing a cannabis bounce,
        we believe the odds are better with
        names that have less cloudy outlooks.
        Our report which is not a recommendation
        to buy or sell securities is
        available through INKResearch.com or
        the Canadian Insider Club.
        Good luck friends and thanks for listening!