Reason for increase in LHS share price in the last week???Liberty Health Sciences Inc. (Aphria USA) share value has increased approximately 30% in the past two weeks. Without any press releases during that time frame, I was wondering what caused the share price to increase. I have a theory and I would like to hear what others think.
Today's announcement about LHS opening 2 dispensaries in Florida by December 2017 was positive news, but with all due respect, I dont think it was the reason for the recent increase. If anything, LHS is behind their own imposed schedule of opening dispensaries as shown in their Investor Deck.
Initially, they planned on opening Villages dispensary in October followed by Fort Lauderdale, Miami and Jacksonville in December 2017. Today's announcement delays the opening of Villages to December and possibly further delaying the Miami and Jacksonville locations until 2018. It looks like they will have only two of the four planned dispensaries opened by year end. Not a big deal, just an observation.
I think the real reason for the recent increase in share price is the new CSE25 Index announced earlier today by the CSE. The new index includes the top twenty five securities by market capitalization contained in the composite index. LHS was given the highest weighting of 14.31%. My guess is that the CSE was purchasing stock over the last two weeks in companies that formed part of the new index which then pushed the share price of LHS up by 30%.
Curious to hear if anyone else believes that this was the reason for recent share price increase in LHS.
M