RE:APHA: Profitability will contrast the weak earnings reportsSometimes it just takes patience. I know I haven't been invested in this company or sector for as long as some others here. I think though that even without a big splash JV or something similar, APHA will be fine if they just keep executing as they have been. Diamond will supply Canada. One of the Fool articles I posted yesterday mentioned that right now, CC Pharma buys alot of cannabis from competitors to sell through its distribution network. They didn't say how much. But once they get Aphria One EU GMP certified (and they are also producing at Avanti in Denmark which is already EU GMP certified but obviously much smaller scale) they can use their own supply for CC Pharma. They are focussed on Canada and Germany/EU. Ontario will get its retail stores eventually. More stores across the rest of the country will come. ECOE will be operating soon. Rec 2.0 starting in January will offer higher margin derivative products that the black market cannot easily produce. Revenues are steadily increasing. So I think APHA will be fine going forward just executing on these strategies alone but its not going to be a huge explosion.
Consider this sports analogy. Its like a team that trades its draft picks and younger players for veterans/free agent all stars hoping to fastrack their way to a championship. I like the Boston Celtics and this strategy worked for them in 2008 and they were competive for several more years. It didn't work last year. Nothing wrong with that strategy. But sometimes you just want them to draft and develop their own players and let them reach their potential. Patience and perseverence.
All that being said, a JV would be great! But APHA will not fail without one.