Sold.So after 7 years and 2 months, I dropped some shares this week. 55,066 to be exact. Why? Read the article I just posted. As I had mentioned last week (or so), this was to use as a capital loss against the $176,000 gain I had to pay to CRA when the (so called) takeover happened a couple of years ago. Money I would never get back if Tilray bent belly up. (this is year 2 of a 3 year window to claim capital losses against a capital gain). I will take back my 176 while I still can.
Let's talk dilution here. Most people shrug their shoulders and don't pay much attention to it. I beg to differ and I DO pay attention. The number of shares outstanding is 730 million which will be increased to 1.2 billion. When I purchased my Aphria shares in 2016/2017 the shares outstanding were well below 100 million. I had 100 thousand shares. So in other words I held over 1/10th of 1% of the company. Things looked good. Then came the start of the dilution. Paying way too much for smaller overvalued LPs. And I mean WAY too much, some of it in the form of shares. I used to post on Stockhouse that exorbitant amounts of money were being used to purchase these companies only to be chastizes by some of the members here. (The same mentality that one would use to say that a person who excels at a particular sport is well worth the hundreds of million of dollars paid to them to play their 'game'. The same could be said for lackluster cannabis CEOs). Then came the take over. (and let's remember, it is 'Tilray' in name only. This 'company' is almost all Aphria). Another 17% haircut to Aphria shareholders, followed by more and more dilution to buy ...... beer companies.
This company seems to not know where it is going. Although Simon gave an OK interview on BNN last week I have little faith in him. The 24 thousand share I have left are in a TFSA ........ they also may be on the auction block soon. Why am I posting again???? To give you something to think about. ....... Be careful.