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Aphria Inc. APHA

Aphria, which is headquartered in Ontario, produces and sells medicinal and recreational cannabis. The company operates through retail and wholesale channels in Canada and internationally. Aphria is a main distributor of medical cannabis to Germany and has operations in over 10 countries outside of Canada. However, it does not have exposure to the U.S. CBD or THC markets due to the constraints of federal prohibition. It has some U.S. exposure through the acquisition of SweetWater, a craft brewer


NDAQ:APHA - Post by User

Bullboard Posts
Comment by mpdsn777on Nov 06, 2019 2:06pm
78 Views
Post# 30316888

RE:Tomatoes and me...

RE:Tomatoes and me...Are the surnames of the two friends Mastronardi? :)

Alex1100 wrote:

I see that many on this board do not quite understand exactly what is happening with Aphria, so I will try to make a comparison that will makes things clear and hopefully lift our dangerously low spirit.

If we imagine a market where two friends sell tomatoes at different counters and want to earn some extra money.... what will they do?  They will simply start selling the goods at discounted price - preferably, most of it to each other .... when one runs out of goods, the other would take over by selling the goods he just bought, back to his friend. Meanwhile, the market price drops, of course, and two friends (who are otherwise pretty well off) starts buying (and accumulating) cheap tomatoes themselves on that very market.  How they will eventually make money? 

Two possible scenarios are here in play...first is that when the price is low enough, two friends start spreading the rumors of bad weather or incoming pests problem so to increase demand and raise the price ... This is a "flushing" technique that could be repeated from time to time and will last as long as there are willing sellers. The second scenario is when there are very little tomatoes left on the market (most bought by two friends remember) and they are now almost the only sellers....this time, however, at a price much, much, much higher than in scenario one, or so to say, at the price at their discretion....

So, what we, remaining apha miserable shareholders can do?  

We can only not sell our goods at their prices .... the moment we stop selling our tomatoes, two friends’ mutual trade would makes no sense any more and the goods will again have the price it deserve. 

Hope I was clear. 

 

N.B.

Please do not forget that two friends could by no means do this without the consent of their suppliers i.e.  those who produce that tomato ...I know that from experience!

 

Stay strong,

Alex



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