Aphria Inc. APHA

Observation from this mornings Globe & Mail article...

[Monteviale]

It was interesting to see Battley"s, Linton's and Neufeld's pricing strategy for provinces should wholesale prices drop too much...  

Cam Battley - for ACB - "If a particular province sets wholesale prices too low, that's OK, we have options."  Really?  Where does he expect to go to sell  if provinces are too low?  Germany?  If he can't compete in Canada because his cost structure is too high, does he really think he will be able to compete in Germany and Australia?

Bruce Linton - CGC -  "While there will be some short-term pressure, the company has multiple markets, including medical and international, and is focused on different forms of marijuana that can eventually be sold at a higher margin, such as infused beverages" ..."This is a transitional thing," Linton said by phone. "Over time, we can maintain our margins creating evolved products."  Linton plans to maintain his margins by having value added products that he can sell for a higher price instead of reducing cost per gram.

Vic Neufeld -APH-  the company will be "in the driver's seat" in terms of lowering the selling price without sacrificing margins,".  

And who said being the lowest cost producer didn't have its advantages....

Amid marijuana boom, cost data leave analysts dazed and confused