The cannabis industry came blazing out of the gates this year, and many investors are looking for exposure to the fast-growing marijuana space including companies directly or indirectly involved with cannabis, Cannabidiol (CBD) and hemp.
However, it can be challenging making a decision on the company to invest given that most Canadian growers are in early differentiating stages.
Aphria Inc (NYSE: APHA) is now on the recovery path amid a disappointing earnings report. The company grows and sells medical as well as recreational marijuana products in Canada. Moreover, it has notable foreign medical marijuana operations.
Aphria Inc Price Check
The company has been through a lot of drama lately with allegations regarding an asset purchase as well as conflict of interest in the C suite. As a result, the stock was sent from more than $16 per share to below $4 a share in a short period.
However, the company has restored confidence as it’s observed with an increase in the price. Currently, the stock’s price stands at $.6.95 and is set for an upward trajectory.
Although the recent earnings numbers may have stopped the upward move for a bit, still, APHA is well-positioned to recover nicely.
A Closer Look at Aphria
Founded in 2014, Aphria is one of the largest cannabis companies in the world listed both on the NYSE and the Toronto Stock Exchanges. Aphria is the third-largest grower in Canada with over 250,000 kgs of peak annual output at full capacity.
There have been several negative happenings in the company which might have led to the poor third-quarter earnings results despite recording CA$73.6 million in revenue.
Perhaps, the revenue recognized was as a result of the acquisition Aphria made of distributor CC Pharma during the quarter.
The Management Scenario
Over the past few months, Aphria board has seen several changes with the latest one being the resigning of its president Jakob Ripshtein from June 7, 2019. Furthermore, CEO and co-founder had earlier left the company and Irwin Simon resumed duties as interim CEO.
Why it’s Important
Confidence in management is essential, and with marijuana companies now going all out wooing the lucrative market opportunity via inorganic growth, operational excellence, as well as management expertise, are of utmost importance.
And critical decisions have to be made for that. Looking at his record, Simon has the capable hands of managing the company to recover from reputational blows that it had suffered recently.
Nevertheless, performance wise in the year to date, APHA has gained about 36.7% against 15.9% of the S&P 500, but it has lost 35% compared to a 6.7% gain for S&P 500.
The Expansion Mode
Aphria is simply in an expansion mode. The company has made several deals; for instance, the deal with Southern Glazer’s wine & spirits for distribution of Aphria’s recreational marijuana products in Canada.
Also, it acquired several South American cannabis companies for almost $200 million last year in a deal with Scythian Biosciences.
Furthermore, earlier this year the company signed supply collaborations with each province in Canada as well as the Yukon Territory to ensure access to its products for almost 100% of the population in Canada.
The deal that Aphria referred to as “opportunistic” and “inadequate” from Green Growth is another highlight. Aphria management stated that Green Growth’s offer simply undervalues it by 23%, and hence it urged shareholders to reject the buyout.
It’s, therefore, a move that suggests as much as the company has not realized full potential; it’s right on the track to make even tougher decisions. Besides, it leaves the doors open to the fact that Aphria may finally have a potential acquisition candidate. Perhaps, it won’t surprise anyone if another big firm off-the-cannabis industry invested in Aphria.
Is Aphria a Smart Pick?
The bottom line is that Aphria, for now, has many skeptics. However, with a top-tier production capacity as well as a solid strategy for Canada’s recreational pot market, Aphria is set for the highs.
Subsequently, the company’s acquisition of Nuuvera giving it a supply deal with CC Pharma opened for the company to enjoy a robust international presence.
Nevertheless, Aphria is well ‘moving past’ its past, and it’s arguably in the best shape ever to keep an upward trajectory that will continue rolling for an extended period.
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Disclosure: We have no position in APHA and have not been compensated for this article.
Forget APHA and ACB, Buy GTBIF and TCNNF
There are a lot of misconceptions going on when it comes to US legalization. Many investors are buying Aphria (APHA) and Aurora Cannabis (ACB) hoping to bank on what’s happening in the US. However, they are Canadian Licensed Producers and have no business in the US. Investors are buying them because they trade on the major exchanges, but that is the wrong move. The correct move is to buy the US multi-state operators like Green Thumb Industries (GTBIF) and Trulieve Cannabis (TCNNF).
On Election Day voters in New Jersey, Arizona, Montana and South Dakota voted to legalize recreational marijuana. South Dakota and Mississippi voters also approved measures to legalize medical marijuana.
There’s also the prospect of a more pot-friendly White House with President-elect Joe Biden. Vice Presidential Candidate Kamala Harris said at the debate a Biden administration would decriminalize marijuana at a federal level and expunge criminal records of people with marijuana-related offenses.
Green Thumb Industries Inc. (“Green Thumb”), a national cannabis consumer packaged goods company and retailer, promotes well-being through the power of cannabis while giving back to the communities in which it serves.
Green Thumb manufactures and distributes a portfolio of branded cannabis products including Beboe, Dogwalkers, Dr. Solomon’s, incredibles, Rythm and The Feel Collection.
The company also owns and operates rapidly growing national retail cannabis stores called Rise™ and Essence. Headquartered in Chicago, Illinois, Green Thumb has 13 manufacturing facilities, licenses for 96…
What Do Investors See In Medical Marijuana Stock (OTCMKTS:MJNA)?
Medical Marijuana Stock (OTCMKTS:MJNA) has emerged as one of many investor’s favorite pot stocks in the legal cannabis universe in 2020. The stock is already up about 10% in 2020, demonstrating how investors have warmed up to the stock early on in the New Year.
Following a disastrous 2019, cannabis investors lost money but have also learned that their best bets are stocks with strong fundamentals. They are looking for companies that have positioned themselves well in the cannabis industry and have what it takes to go for the opportunities. That is why MJNA stock is catching a lot of investor attention in 2020 because of how it has positioned itself in the cannabis market.
Robust revenue growth and strong financial position have also helped put MJNA on the radar of investors hunting for quality cannabis stocks. Revenue at MJNA more than doubled from $26.5 million in 2017 to $60 million in 2018. MJNA is also not in financial distress as may be the case with other cannabis companies out there. The company finished the third quarter, the most recent reported period, with $5.5 million in cash reserves.
Moreover, MJNA has recently taken steps to expand into new international markets and invest in companies that are leaders in their segments. These prudent actions are helping lift Medical Marijuana stock as more investors learn about them.
About Medical Marijuana stock
Is Tilray Inc (NASDAQ:TLRY) A Buy Or Sell?
For Tilray Inc (NASDAQ:TLRY) and the rest of cannabis stocks, 2019 was no doubt a bad year. But 2020 is shaping up to be a promising year for the stock. To start with, Tilray stock has already gained 8.35% year-to-date. If that says anything, it shows following the broad selloff in Tilray stock last year, we’ve got to a point where sellers are giving way to buyers in the stock.
There are several catalysts that should continue driving NASDAQ:TLRY as you’re about to see. First, below is a brief profile of the company we’re discussing.
Tilray is a Canada-headquartered global cannabis company. It is engaged in activities of cannabis cultivation and processing as well as marketing and distribution of cannabis products. Tilray already has several cannabis products brands to its portfolio. It operates across five continents through subsidiaries in Canada, Australia, Germany, and Portugal.
Following the broad collapse of cannabis stocks in 2019, investors are looking for cannabis stocks that can make a positive impact on their portfolios in 2020. Tilray stands out as an attractive cannabis stock pick in 2020. Here are some of the exciting things about the company.
Tilray CEO sees a bright future for the cannabis industry
On January 25, Tilray CEO Brendan Kennedy spoke on Bloomberg. In that interview, Kennedy framed a rosy outlook for the…