There have been a few stocks in play over the last while that investors should be paying close attention to, but this week there are three that I’d be running through with a fine-toothed comb. Aurora Cannabis (TSX:ACB)(NYSE:ACB), Canadian Apartment Properties REIT (TSX:CAR.UN), and Stars Group (TSX:TSGI)(NASDAQ:TSG) have all had some major announcements that could seriously affect shares.
Aurora After reaching its highest point since October, shares are back down again for Aurora Cannabis. After its announcement that it was bringing on billionaire investor Nelson Peltz for advising, the excitement dwindled.
Then news came that the company is seeking a partnership outside the cannabis industry but without giving up an equity stake in the company. Peltz has said it wouldn’t be wise to grow so much only to hand over controls to someone else.
Investors aren’t convinced, and the next quarterly earnings report will likely underline this. Aurora is playing a wait-and-see game with its investors, and many are getting impatient to start seeing some profit. But if you’re able to wait and see, this could be an ideal time to buy up the stock and, well, wait.
Canadian Apartment Properties Looking at this company’s historical data, it seems Canadian Apartment Properties is headed in the right direction. Most of the company’s net operating income comes from Ontario properties at this point, and with stable occupancy has come stable monthly rents that have increased about 5% in the last year.
The last year has been one of healthy growth for the company, with net operating income rising 11.6% year over year, and analysts expect more of this going further, especially due to its recent expansion into the Netherlands.
With a recent slump happening, investors might want to buy this stock before further positive news. Then they can take advantage of what analysts predict will be a rise to $60 per share in the next 12 months.
The Stars Group Despite a lot of headline coverage lately, analysts aren’t so sure about this stock and believe even in a 12-month period it’ll probably remain where it is around $30 per share. Even after a jump of 15% after news of a $318 million partnership with Fox, the stock still remains under that $30 mark. But that could change when Fox Bet is launched this fall.
So, it looks like it’s going to take more than a partnership to really push this stock higher. The company has remained at a steady increase in earnings, with revenue up 81% in the last quarter, and gross profit up 68%, and yet it hasn’t been enough to convince investors to buy.
Analysts believe it’s the ghost of litigations past and expensive acquisitions that are keeping investors away. But perhaps once the profitable proof comes out, they’ll hop on board again. That makes now an ideal time to buy before such news breaks.
Fool contributor Amy Legate-Wolfe owns shares of Aurora Cannabis.
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