Post by
onward1 on Sep 12, 2020 11:10pm
APHA is overvalued, will resume shorting it
With 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.
Comment by
ArimaForecast on Sep 13, 2020 9:10am
Should short ACB since 1 week, less risk
Comment by
CaneIsAbel on Sep 13, 2020 1:30pm
I'm long aphria have been since 2018. But I gotta say with Irwin at the helm I really don't blame you. Eventually Aphria will send you to the cleaners but for now very good bet. I almost want to move to short at 2 dollar Canadian price range. Irwin can find a path to take us there. Where there's a will there's a way for that clown