RE:HOW WILL CANOPY, TILRAY , CRONOS SURVIVE???The answer to your question is economies of scale. It takes a long time to build global giants. I believe Canopy is going to show how profitable it's Canadian operations are in the near future. Creating a global giant costs money. It's also why aph lost its streak of positive quarters. It's all good. I'd rather Aphria sacrifice profitability now for greater reward in the future.
canucks444 wrote: Investigator said....." "The math on this is simple. The company will have production capabilities of some 230,000 kilograms of cannabis per year when they complete their building projects (should be mid-2019). The wholesale value of cannabis in Canada is $5.20 per gram. If Aphria were to produce 100% of their capabilities and sell at that price, then revenues would be $1.196 billion. I have done a considerable amount of analysis on cannabis stocks. What I have found is that bottom-line margins run fairly consistently at 17%. Given that, net earnings would be $203 million on the $1.196 billion revenue. At a 20-times multiple of the earnings, that values Aphria at $4 billion. The Green Growth offer is for half of that."...... . .My Question is....If Aphrias production cost per gram is under $2 and pot will sell for $5.20/gram. How will these companies like Canopy (production cost per gram $5.50); Tilray production cost per gram $4.75); Cronos production cost per gram $4.25); How can they even EVER turn a profit.