How Aura Health Is Building Tremendous Value in European Cannabis Market
Aura Health (CA:BUZZ – $0.06 & US:LMLLF – $0.05) is building a leading vertically-integrated medical cannabis company with a focus on the European and Israeli markets. Reasons to own Aura Health stock:
1. A cannabis gateway to Europe: by 2028 the European medical cannabis market is estimated to be $123 billion, making it the largest cannabis market on the planet. Aura has one of 15 licenses in Germany and is early to the European medical cannabis game. Before long, we believe markets will begin to pay attention to Aura, as one of the only pure plays into Europe.
2. Sales Growth in Germany: Aura is currently producing revenue from Pharmadrug’s operations in Germany. Currently the company is importing product from the Netherlands, but significant upside exists through larger allocations from the Netherlands and supply agreements from Canada and Israel.
3. Building a Retail Dispensary Brand: We are very bullish on the Company’s recent closing on their majority acquisition of CannabiSendak in Israel. Israel is a global leader in medical cannabis with a burgeoning number of patients. Most importantly, Aura has partnered with the country’s biggest cannabis guru and it doesn’t take many patients for the cash to begin rolling in under their retail dispensary/clinic model. This retail presence will grow to Aura’s base in Europe.
4. Valuation: at a $5 million market cap, Aura is one of the cheapest companies on our radar. Trading for less than half of its invested capital, management and insiders continue to purchase shares in the Company. As some of our sensitivity analysis will show, Aura is on the verge of generating significant revenue at healthy margins.
We initiate coverage of Aura Health with a buy recommendation and a price target of $0.21, which is 258% above today’s stock price.
Download the second quarter 2019 Aura Health Company Report.
|Smallcaps Recommendation: Buy||Price Target: $0.21||Latest Company Report (pdf)|
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