I bought 25,000 shares of APH yesterday...I figure these guys have been screwing around for long enough and it is time for a Pharma to come in and take a position in APH. I wish APH was a bit more at this point in the game, but I think with the right partner they can be much more in the future. I like APH at this price and market share count because:
1. This could easily be a 5-10 billion market cap company if they execute from here really well;
2. APH would fit really well with a conservative Pharma company. Vic has always been a medical guy and has built this company more for medical than rec. I'm not saying they won't be good at rec, I'm just saying so far APH has been strategically aligned more medically than recreationally which should be a great fit for a Pharma partner;
3. Vic's early forays into the US were inadvisable, but with the US now finally showing major signs of change the experience that APH has in that market has a decent chance of paying off;
4. I think Vic learns from his mistakes and I hope to not see a repeat of that Nuuvera deal. That one landed like a lead balloon and took APH down and I think affected the entire market to a degree. Stupid deal done out of a sense of urgency to try and keep up with Canopy is what I think. Way overpaid for a very mediocre asset, but I don't think a catastrophic error in the long term.
5. Vic is finally doing more than greenhouse. Good to see APH branch out and diversify and this should pay dividends as they continue to expand out.
6. I like Vic. Even thought there have been a few transparency issues over the years with APH I think Vic is an inherently reasonable and fair and I have enough trust in his value system to think that he does not go out of his way to be too greedy or egocentric to make self interested decisions on a grossly unfair scale.
So there it is. After being out of APH for about 8 months I'm back in and fully expecting to see this stock hit at least $25 in the next 12 months. Be well.