Aphria Inc. APHA

Aphria Continues to Grow while rivals regress

[Savage97]

While peers are burdened with debt or on the verge of bankruptcy, Aphria ended the quarter with CA$515.1 million of cash and cash equivalents. The money will be put toward expansion in Canada and internationally.  Here are the facts:  Aphria posted stellar fiscal third-quarter results on April 14.  Most other pot companies, in contrast, are burning through their cash reserves at an alarming rate. High, consistent profits demonstrate how well a company is handling its operating expenses. Aphria has shown positive EBITDA (earnings before interest, taxes, depreciation, and amortization) over the past three quarters, while most cannabis companies reported negative earnings. In its recent fiscal third-quarter earnings, Aphria recorded a positive adjusted EBITDA of 5.7 million Canadian dollars.  Aphria also continues to grow as the company is nearly completed it's production facility in Germany and Columbia, and recently reported that the company now has the ability to import cannabis resin and dried flowers along with being able to package and distribute GMP-compliant cannabis products all across Europe.

[Humanist]

Nice post savage, why do you think it cannot seem to stay above 5 though?  everything is affected by the covid 19 but the cannabis sector is in a such a disaster zone now. although ahria is doing much better than many others. it cannot seem to break through! thx

[Savage97]

When major players want to acquire large positions they can't do it all at once for fear of driving prices higher, so they use the media to help bring the stock back down to their target level so they can start accumulating again and continue to repeat the process. For longs following suit, this bite size approach is a great opportunity.    

[Humanist]

thx for the explanations savage, appreciated .gl

[Savage97]

Thank you Humanist, just wanted to share my opinion but as your probably know, I'm no expert lol.  Best of luck to you.

[Humanist]

I always read your poss savage, so no worries i appreciate your disclaimer thats v kind of you, bc there are a lot of people who you can trust what they say as far as you can throw them.. either pumping or bashing..  there are only few people i pay attention to their opinion and you're one of them.. we're all trying our best in this crazy  mkt and sector. gl  thx again S H

[amnebesis]

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[Auditor]

This post has been removed in accordance with Community Policy

[SmellsFishy]

Thanks for your post savage97.  I own 10k share of Aphria and believe that this will be one of the long term winners. I have a question for you.  I noticed that in the news release on May 8th 2020,  The company stated that they had net cash of 36.3 million as of feb 29 2020.  I've tried to calculate why the net cash is only 36.3 million.  Like you said above, they say

[PuffnPass13]

36.3 is NET positive which means it's total cash - total debt = $36.3 mill with the move they have now ~130 million in actual net cash instead of 36.3 hope that makes sense for you. cheers, puff