Don't let the emotions get the best of you, it's understandble that you are frustrated if you have a high average price per share and currently have a red Return On Investment but that's part of the game, key word investment.
Here are the price action reasons why I would want to keep Irwin Simon : Let's compare with our competitors (US tickers) :
- March 2020 bottom when the virus officialy affected the market witth
- Friday September 4th 2020 close price
Canopy Growth (CGC)
- March 2020 low : 9.00$
- Friday September 4th 2020 close price : 16.21$
That's a +80% performance
Aurora Cannabis (ACB)
- March 2020 low : 5.30$
- Friday September 4th 2020 close price : 8.51$
That's a +60.5% performance
Cronos Group (CRON)
- March 2020 low : 4.00$
- Friday September 4th 2020 close price : 5.39$
That's a +35% performance
Aphria (APHA)
- March 2020 low : 1.95$
- Friday September 4th 2020 close price : 4.59$
That's a +135% Performance
To make a recap so you don't have to scroll up and down
- APHA : +135%
- CGC: + 80%
- ACB : +60.5%
- CRON : +35%
Here are the fundamentals analysis reasons why I would want to keep Irwin Simon :
- 5 Quarters in a row Ebidta Positive
- 5 Quarters in a row Recreational market share growth
- Aphria is #1 in recreational market revenues which is a market bigger than medical
- Aphria is #1 in international revenues with a strong presence in Europe CC Pharma
- Aphria One is EU GMP meaning we can use CC Pharma channel to distribute and make sure we keep selling products in case of oversupply market conditions in Canada
- Aphria is #1 for revenues in Fiscal 2020
Now when it comes to his salary I suggest you read this old post of mine :
https://stockhouse.com/companies/bullboard?symbol=t.apha&postid=31147656
Salary that is overall in shares that he can't cash out anytime. When his RSUS will vest during 2021 it would only be in his best interest that by then the price per share appreciated which means that I'm sure he's doing everything in his power to have that appreciation.
There is no other canadian MJ company that can brag about the 6 points I gave in the fundamental analysis reasons.
Therefore, I can only come to the conclusion that since Irwin Simon joined Aphria he clearly turned the ship around even if having him as a CEO seems costly $$$. All his experience doesn't come cheap and there's no one else to thank expect Irwin's vision , leadership and management he brought at Aphria.
Eventually share price will follow all the improvements Aphria made since Irwin arrived. It's only a matter of time before we're cash flow positive, last quarter, the assets impairments + inventory writedown were the only reason we didn't post a positive earning per share and who knows a positive cash flow. We only burned 18M$ when you compare cash on hands from Q3 2020 to Q4 2020.
Anyways Calmdown11 and anyone else that is paniced, you should really do more due diligence and do what I like to call benchmarking (comparing the competitors). You can also just click on my profile and look at my prior posts except the ones where I do technical analysis on the chart.
Hopefully this will help everyone to calm down and encourage everyone to do some benchmarking,
- Reading the financials of Aphria and competitors
- Reading the Management Discussion & Analysis of Aphria and competitors
- Listen to Aphria Conference alll and competitors
It's the only reason why I'm still invested in Aphria even thou my Return on Investment is also negative since my investment journey, key word investment. If Aphria was not improving like it has been doing since the past 5 quarters, I would of sold all my shares and moved on long time ago,
the problem is not the company, the problem is my timing, my average price per share. You can read this post also to see what I have started doing to reduce my average pricer per share (
https://stockhouse.com/companies/bullboard?symbol=t.apha&postid=31440855)
I will post my technical analysis of the chart tomorrow since we broke a key support unfortunately like promised.
See you tomorrow, enjoy and relax :)