RE:RE:Devils Advocate "Poison Pill Strategy" So what happens to value of Aphria in 2020 if the US legalizes cannabis at the federal level and Aphria has expanded their business in the US between now and then?
Why does everyone want a buyout at such an early stage. There are much better companies in the sector if you want to park your money hoping for a buyout.
Over the past five years Constellation Brands share price increased from $50 to $200. When it comes to Aphria why not think longer term?
From an outsider looking in it doesnt seem like Aphria's strategy is to exit the US market any time soon. Kind of sucks unless you are playing a much longer game that may create greater shareholder value.
M
kingbear wrote: Management is hurting the company's image and reputation by holding the U.S. assets. APH will always be a laggard even when fundamentals matter, and therefore the longs won't make as much bc of these U.S. assets. If by 2020 APH is at $15 they might get a buyout for $20 big deal. If they played this right from the start APH would probably be at $20 right now.
If no U.S. assets the current price would be $20, buyout at $40 bucks by 2020.
Reality: Holding U.S. assets: buyout in 2020 for $20.
Killing shareholder value.
Monteviale wrote: There is a lot of whining on this board lately about shareholder value. Maybe management is playing the long game and they don't care what the share price is currently at. They are building a business.
Is it possible that Aphria is using their US investments as a poison pill to prevent a hostile takeover from happening while mgmt continues to buildup the business. If the overall strategy is to maximize shareholder value then would it not make sense for management to prove their business model first then entertain offers?
It's still early people.
Monte