Irwin's strategy is the right oneI said some weeks back that it could be that the only thing that will break the negative mindset of MMs re APHA is continued profitability and sales growth, long term. I.e. "Show Us the Money". It's becoming clearer that that is the case, and we can now see that MMs really have a perceptual mental block about this co. How many other companies in other industries would see a >1% sp DROP, on a day when a doubling in production capacity is announced? Especially when on the same day failing cos like WEED, ACB, TRST, ad nauseum see sp RISES. We're still penalized while others get a free ride. There is also still a lot of misinformation around, esp among so-called "analysts". Those who think there is an over-supply issue re APHA haven't been paying attention; our flower is in high demand, & our oils extraction facility will eat up all the supply we can put out. Then there's the forthcoming EU market. One problem is most MMs and analysts are American-based, and they generally give little thought to the size of the EU and CDN markets - for anything.
So today, on such a disappointing day it's important to remember Irwin's clearly stated strategy to achieve a breakthough, which differentiates us from the others. This from today's news release:
“We believe the introduction of our proprietary automation technology at Aphria Diamond will provide us with the ability to cultivate high-quality cannabis with great efficiency and at an unprecedented scale,” continued Simon. “As we remain focused on sales growth and profitability, this unique advantage is expected to enable Aphria to continue to create long-term value ...".
Eventually, lowest cost, high volume, high quality product will win out.