RE:RE:RE:Tick Tock, 37 days left on 90 day clockgottahunch wrote: Agree a big multinational investor adds credibility. Don't rule out the effects analyst reports can have on the SP though. Look at the Jefferies boost we recently got. A few more reports like that and we'll get some great attention. Someone on Yahoo posted that Morgan Stanley has been buying recently by reviewing their house positions... Seems to be how it works. Institutions buy, than analysts come out with positive research reports. GLTA
bionicjoe wrote: Sad to say but it seems the only language the market understands is that of a major corporation taking a large position in Aphria. Look what it has done for Cronus and they have nowhere near the near term production capacity of Aphria. I see that Cronus is trading above $21 again. Without Altria I daresay it would trade around Aphria's numbers. Aurora suffers from the same fate as Aphria. Without an investment partner the sp will continue to be less appreciated. The way the market sees it in a time when the cannabis sector is sorting itself out as to who will be the winners and losers it becomes even more critical to have a multinational with deep pockets in your corner. There's no getting around it. It's what the market wants and it's what the market is not getting. We can do it the hard way by slowly bringing on production and the resulting revenue stream but that still doesn't address the security that a multinational partner would bring. Like it or not, the market is waiting for some big deals to happen before giving Aphria an unconditional thumbs up.
With all respect but the analyst reports are good only for the day traders during a few days when the reports are hot news. They do nothing for the longs as witness the sp is now trading at less then half of its 52 week high. The reason a Cronus has escaped the wrath of the market is simply that investors see it as Altria not allowing it to fail. It becomes a safer way to bet on the cannabis sector as it tries to find its legs. Pound for pound Cronus doesn't measure up to Aphria so what makes it leaps & bounds more attractive to those investors wanting stability and security for their money? Look no further than the Altria partnership.
Aurora is in the same boat as Aphria. It too is going through its ugly duckling stage. We can call it as irrational as we like but the fact remains the market movers want to see some progress on the JV front or else they will worry about every real or imagined headwind that crops up for the cannabis sector. The future will be all about revenue and profit but for now it seems that the market needs to have its hand held by some multinational conglomerate.