Yesterday, it was reported that Bank of America Merrill Lynch analyst Christopher Carey reduce his recommendation on Aurora to neutral from invest in. Despite the fact that he nonetheless finds issues to admire about the business, he expressed concern in a note to the bank’s customers that Aurora “is burning money and by our estimates could be money adverse by initially quarter 2020.”
The analyst pointed out that in that quarter, a significant convertible bond will come due for the business. This will have a sharp influence on Aurora’s reasonably thin money position.
Drawing funds from stock issuance could possibly not be a lever Aurora can continue to pull. More than the space of only a couple of years, the company’s shares outstanding count has ballooned to more than 1 billion. A business that…
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