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Aphria Inc. APHA

Aphria, which is headquartered in Ontario, produces and sells medicinal and recreational cannabis. The company operates through retail and wholesale channels in Canada and internationally. Aphria is a main distributor of medical cannabis to Germany and has operations in over 10 countries outside of Canada. However, it does not have exposure to the U.S. CBD or THC markets due to the constraints of federal prohibition. It has some U.S. exposure through the acquisition of SweetWater, a craft brewer


NDAQ:APHA - Post by User

Bullboard Posts
Comment by SquishyIncon Jun 28, 2017 10:24pm
183 Views
Post# 26417266

RE:RE:Why I'm Worried...

RE:RE:Why I'm Worried...Well that sounds really encouraging, thanks, so do they have some sort of a plan to market what they grow? And what are your projections for the next few quarters? Seems like it's gonna be hard to maintain that amazing EBITDA if the revenues are flatlined? Or maybe not? I was just reading this article about EBITDA, and how it can be manipulated: 

"EBITDA can also be deceptive when applied incorrectly. It is especially unsuitable for firms saddled with high debt loads or those who must frequently upgrade costly equipment. Furthermore, EBITDA can be trumpeted by companies with low net income in an effort to "window-dress" their profitability. EBITDA will almost always be higher than reported net income.

Also, because EBITDA isn't regulated by GAAP, investors are at the discretion of the company to decide what is, and is not, included in the calculation. There's also the possibility that a company may choose to include different items in their calculation from one reporting period to the next.

Therefore, when analyzing a firm's EBITDA, it is best to do so in conjunction with other factors such as capital expenditures, changes in working capital requirements, debt payments, and, of course, net income.

GiddeeeUp wrote:
As APH increases the size of their growing area you have to wait for the increased production, processing then sales. APH's main focus is medical where uber crazy high THC levels are not the primary concern.  Higher levels of CBD are more important for mmj.  lol I laughed at your comment that they need to start spending money, you do realize they're spending over $70 million to complete Phase 4 i.e. 1 milion sqft of greenhouse grow space as well as the vault, labs, testing facilities etc.  Nothing is guaranteed but to me this company seems on the steady right track.

Cheers.


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