This morning Aphria is up over 30% in pre-market. We rolled together the reactions of various writers, blogs and social media for anyone looking for a quick summary:
- Over at MarketWatch, Max Cherney writes that “its fiscal 2020 guidance was likely one of the other reasons shares rose more than 30% in the extended session Thursday. In the conference call, executives said they expected revenue net of excise taxes in the range of C$650 million to C$700 million. Simon said the company aims to hit a C$1 billion run rate by the end of the fiscal year.” Max has some other great nuggets in there, it’s worth a read.
- At the Globe and Mail, Vanmala Subramaniam reminds us, “In a recent note ahead of Aphria’s earnings, CIBC analyst John Zamparo slashed his price target on the company, warning that it could face a similar impairment charge, possibly as soon as the most recent quarter, in relation to the $425 million acquisition of Nuuvera Inc., a company that had some cannabis-related assets in Italy, Germany and Israel. The company did not write down the Nuuvera assets in its quarterly results.”
I’m not sure what that was about….. As I said, our strategic priority over the last six months has been focusing on our Canadian operations here in Leamington.”Irwin Simon, CEO of Aphria, in Response to CIBC Downgrade, Globe and Mail
- Over at Grizzle, the ‘Professor of Pot’ Scott Willis says, “The most important takeaway for us is that Aphria was able to double sales of cannabis when industry sales as a whole are up only 30%-40% over last quarter.”
- Over at Equity Guru, Chris Parry wrote: “The sector has needed a giant to show institutional money that someone can be an adult here, and that it was Aphria, which was not so long ago being pounded out by short-sellers after shenanigans by the former CEO, the formerly respected Vic Neufeld, is important.”
And from Twitter, Andy DeFransesco reminding all the nay-sayers that he didn’t sell Aphira a magic bag of beans:
Information for this briefing was found linked sources and Twitter. The author is short Aprhia via Puts and has no affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
SmallCapSteve started blogging in the Winter of 2009. During that time, he was able to spot many take over candidates and pick a variety of stocks that generated returns in excess of 200%. In the time since, he has taken a heavy focus in the cannabis space with a particular affinity for multi state operators, for which he has become a known thought leader.