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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

Post by onward1on Sep 12, 2020 11:10pm
270 Views
Post# 31549296

APHA is overvalued, will resume shorting it

APHA is overvalued, will resume shorting itWith a market cap of $1.7B (enterprise value ~$2.2 billion) and normalized annual revenues of about $400 mill, and continuing dilution, I think the share price isn't going anywhere anytime soon. Clearly, the overall growth rate for this sector is quite low and I suspect all the competitors will compete on price (OGI recently announced 12 "value" SKUs). I am now fairly hedged (long in one account and short in another using options). I will go net short beginning Monday. 
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