Aphria (APHA) is the market share leader in Canada with recreational cannabis. Investor sentiment is now changing to bullish territory.
Aphria has had some serious headwinds for the past 4 years. I feel like an old man finally seeing the light at the end of the tunnel. Their former CEO bought an awful investment from a personal friend that wasn’t even real essentially let alone being accretive. Well, Hindenburg found that and went short. But the assets up in Canada still were strong. They have a state of the art greenhouses and have a fully automated system.
There have been some kinks in production, but they appear to be ironed out. There is an issue of inventory write downs coming this Q, but when you are trying to perfect manufacturing issues (a capital intensive practice), you need to keep trying, which means spending more money.
Aphria released BINGO’s brand this year to fight off the inventory glut issues, which is a bulk brand that is selling like hotcakes.
In addition, since COVID hit, cannabis has become extra in demand which should provide a sales bump across the board to Aphira.
July was a 15% increase countrywide, which should only continue into August and into September.
Aphria saw a 20%+ increase in demand last Q on the recreational side.
Additionally, Aphria should start to see international strengthening in Germany as its infrastructure and grow operations are finalizing. Sales should begin soon with domestic growth in Germany and Euro.
They own a German Pharma distributor that has like 90 million a Q in revs.
Strategy – Aurora, a penniless moronic stock reports after hours. They already publicly announced that they are going to miss their revenue guidance. In addition, they had to re-write their loan amendments with BMO as they cannot meet anything on their side of the bargain. Aphria’s stock is going to come down to around 4 after tomorrow.
Should you buy Aphria (APHA)?
Shares of Aphria (APHA) appear to be a very good investment option, the Money Midnight Indicator is expecting its price to increase considerably in the next several months. The majority of the metrics point to this investment being highly attractive.