I compare Bitcoin and pot stocks potential to someone in 1998 saying this crazy though: "Buy into the Internet market space" Not so crazy now...
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As much as this is a scam, there is good potential to gamble at these prices by flipping. Couldn't resit earlier this week and set a limit order to purchase 5s and it got filled today. Roughly $500 for one million shares... lol a few years ago I'd be considered a major company shareholder.
Cmon fellow gamblers, I have a sweet deal for you guys tomorrow: I'm willing to sell my 1M shares for only 0.0007 each... Who will be the lucky buyer?
What most probably don't realize is just how big of a deal having APH trading on the OTC is!! APHQF started trading last Monday the 13th so most US investors don't know about it yet.
Once they do and we start seeing some good volume for APHQF, APH will fly (roughly at a rate of 30% quicker than APHQF, which represents the currency exchange rate)
Those willing to hold for at least 1 year from now will be greatly rewarded. Next spring is when the Trudeau government will be presenting recreational marijuana legislation. APH is currently financing new growing facilities in preparation for this legislation in order to place themselves in the top three largest legal producers.
Anyways, hopefully everyone reading this realizes how the current share price is an amazing buying and loading opportunity. Timing is everything!
He's been living a life of luxury for the past 30 years by selling worthless shares to amateur investors. Sure anyone can day trade this stock and make money but no real investors have ever made money here and the graph tells the story.
GC is 75 years old today and doesn't give a shit about share holder value and never has. This stock will end up at no bid eventually and GC will be filthy rich of dirty money.
I've owned shares in the past and lost a bit of money with COTE playing the swings in share price but nothing I haven't made back somewhere else. I'm just here laying the facts out to hopefully convince any amateur investor not to put their money here. And if this post was enough to convince one 20 year old know it all to step away from buying COTE shares well this post was worth it.
Well what a surprise to see you posting here dad4x!!! I swear to you I did not look at your post history to get here, I am heavily invested in BBD.B for a few months now!
NOW THIS IS A STOCK WORTH DISCUSSING ABOUT!
I will start you off with this, have you seen/read this article posted today June 10th 2016:
Air Canada to finalize order next week **Edit: link does not work but you can Google 'Air Canada single-aisle order lifts Bombardier' to find it.
If not, here is the copy/pasted artcile:
Air Canada hopes to finalise an order of 45 Bombardier C Series planes as early as next week in a move that will add momentum to the Canadian jet maker’s sluggish sales of its newest single-aisle aircraft.
Air Canada signed a letter of intent to buy as many as 75 of Bombardier’s new C Series planes in February but is now ready to convert those orders to firm sales when a team of its senior executives head to Ottawa next week.
“We hope to finalise the documents on those next week,” Air Canada’s vice-president of global sales, Duncan Bureau, told The Australian.
“We have a team in Ottawa next week working with the government and Bombardier to finalise that agreement so we are expecting to firm that order up in the next few weeks. It would be 45, probably firm (orders), and then options for up to 75.”
The imminent finalisation of the order comes after Bombardier received a huge vote of confidence in its new aircraft in April when US carrier Delta, the world’s largest airline by market capitalisation and the No 2 US airline by passenger traffic, made firm orders for 75 planes and options for 50 more.
With Delta’s confirmed orders, Bombardier will hit its target of having firm orders for 300 aircraft by the time the jet enters commercial service next month.
With Air Canada’s orders added in, Bombardier has now secured about 370 firm orders for its 100-seat C Series 100 and 130-seat C Series 300 planes, which promise fuel savings of up to 20 per cent.
Those sales will help Bombardier dent the near-duopoly that Boeing and Airbus have commanded in the aeroplane market for the past two decades and establish Bombardier as a serious contender in the manufacture of single-aisle aircraft.
But the plane maker’s efforts to crack that market have come at a heavy cost for Bombardier, which has poured more than $US5 billion ($6.69bn) into production costs and written off more than $US3bn following close to three years of delays to its schedule.
The delayed program forced Bombardier in October to sell a 49.5 per cent stake in its business to Quebec’s provincial government for $US1bn cash.
Significant discounts, rumoured to be as high as 60 per cent, on the new plane have flowed to Delta and Air Canada to secure their business but Bombardier remains adamant the program should break even on a per-plane basis around 2021.
The planemaker expects to ship as many as 20 planes this year and about double that by 2017. Annual output is expected to reach about 120 aircraft a year towards the end of the decade.
Air Canada’s order is for the larger capacity C Series 300, which can seat between 130 and 160 passengers but it has options to convert to the smaller C Series 100.
“Air Canada has a responsibility to Canadian aviation and Bombardier has a great Canadian product,” Mr Bureau said.
“It’s a great aircraft and meets the needs of the 100-seat configuration that will allow our regional carriers to operate effectively and competitively.”
Air Canada is expecting deliveries of the new aircraft to begin in late 2019 and extend to 2022.
“It’s a very competitive market in North America and there is certainly growth in low-cost carriers and there has been in the US consolidation through merging and acquisition,” Mr Bureau said.
Funny how I posted post#6756 exactly one year ago. I was receiving dozens of PMs every day saying I was full of it and that this company was real and to please remove the post as a sticky!
I hope at least some of you took my side and got your money out.
Mr. Coates is a scammer. Always has been and always will be. He is currently 75 years old and has been working on this 'company' for decades. What he has accomplished in the past 25 years is sell his worthless shares to investors like you reading this right now!!!
For the lazy, here are a few quotes from the article linked below:
'the Coates engine is now described by securities regulators as a device chiefly useful for generating cash for its inventor.'
the S.E.C. accused Mr. Coates of lying about the merits of his invention and using those falsehoods to illegally sell $6.5 million in stock to nearly 400 people across the country.
"Many of these investors were neither wealthy nor sophisticated" and were induced to invest their savings on the basis of Mr. Coates's claims,
Mr. Coates remained in custody in New Jersey yesterday evening and could not be reached for comment.
Mr. Coates distributed forged and unreliable tests to potential investors, the commission said, and one test was an "unofficial tuneup test conducted at a local service station."
Mr. Coates started selling stock to individual investors without registering it with the commission, as required by Federal law.
he personally raised an additional $1.2 million by selling shares that the S.E.C. said might have been counterfeit.
Full article:
http://www.nytimes.com/1994/07/23/business/engine-inventor-accused-of-fraud.html
-MarketShark
What a crap shoot this one turned out to be!!
I bought $1000 of shares yesterday and sold them today for $199,000.00!!! Easy money. Weeeee.
Just kidding.
Congrats again. Can't really relate yet because I am currently MarketSharkX0 but MarketSharkX1 is in the works.
Correct me if I am wrong but IFON has been struggling to due everything going on in South America right? Not sure about what I am about to say but is South America not going through some sort of revolution/depression right now? Haven't been a share holder here for a while but if I recall correctly IFON's main stream of revenue comes from South America, no?
On a side note, can't private message you since I got rid of premium subscription so I'll ask you here; Have you looked in to the Canadian pot stocks as an medium term (1-3 years) investment? It would be nice if they had a chat forum on iHub so that I could keep this discussion off the IFON board but I am feeling generous right now and would love to give you hot leads (as a gift in consideration of your new grandchildren of course)!
Is this Dad4X that's got promoted to granddad6x!? I am sure it is, congratulations :)
But let's be honest here about IFON, it's not looking good. However, playing the chart looks great. I don't believe this company will recover, and I would not recommend it to any of my clients as a long term investment.
That being said, if you are gambling for pleasure with money you can afford to lose then yes I would recommend IFON. As long as you are not greedy and know when to cash gains!
Here's a well written article about one weed stock in particular (Aphria) with comparisons to the other Canadian weed stocks. If you all take the time to read this lengthy article you will see the advantage Canadian pot stocks have versus the American ones. In my opinion the strongest fact backing the argument that Canadian pot stocks have more potential is that we know there will be new legislation brought forward in spring 2017 regarding legalization of recreational marijuana in Canada. The small group of Canadian, publicly traded, pot stock companies are all preparing for this moment by expanding growing facilities (and in the case of Aphria, expanding its facility to 1,000,000 square feet!!!).
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Aphria: the most compelling marijuana investment
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Hope all of you take the time to read this article.
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http://seekingalpha.com/article/3979089-compelling-marijuana-investment-aphria
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Company Description
Aphria (OTC:APHQF) is a vertically integrated Canadian medical marijuana company that is 1 of the 22 Licensed Producers (LP) legally allowed to cultivate and sell cannabis under Health Canada's Marihuana for Medical Purposes Regulations (MMPR). They are based out of Leamington, Ontario, which is often referred to as the 'Tomato Capital of the Canada' because it has one of the longest growing seasons and has the largest concentration of greenhouses in Canada. Aphria was founded in 2014 and got their license to cultivate and sell cannabis from Health Canada in November of 2014 and began shipping medicinal cannabis in January 2015.
Market Opportunity
By 2024, Health Canada projects that the medical cannabis market in Canada will reach $1.3 billion and have ~450,000 patients. The Canadian medical cannabis market's last reported patient count was 43,342 for the month ending January 2016, up from 16,682 from January 2015, which translates into patient growth of 159.81% year over year. The market today is estimated to be ~$200 million and growing substantially quarter over quarter as depicted in the picture below.
The patient growth is being fueled by a multitude of factors including: Doctors are more willing to prescribe cannabis, the stigma is fading, and medical research is validating cannabis' medicinal properties.
In order to legally cultivate and sell cannabis in Canada, each company must be granted a license from Health Canada under the MMPR. As of now, there are 31 companies that are licensed under the MMPR. Of those 31, only 22 are licensed to cultivate and sell cannabis to medical patients nationwide. Of those 22 licenses to cultivate and sell, some companies own multiple licenses so the total number of companies licensed to cultivate and sell cannabis in Canada is actually 18. The government has been slow to issue new licenses so the market for cannabis businesses is relatively small compared to the United States.
For comparative purposes, in Colorado, there are ~2,500 licensed cannabis businesses and the qualifications of opening up a business in Colorado are miniscule. The Colorado market is estimated to do $1.1 billion worth of sales this year compared to $996 million in 2015.
So you have a market that has many players competing in a $1.1 billion industry, while Canada has a much more restrictive market and has 31 licenses competing in a $1.3 billion market. Also, that $1.3 billion figure only represents the medical market in Canada, the recreational market is expected to be worth $7 - $10 billion. On April 20th, 2016, the Canadian Health Minister Jane Philpott announced that Canada would introduce legislation to decriminalize and regulate cannabis in spring of 2017.
In the upcoming November election, California will also be voting on permitting recreational cannabis access. "If California legalizes adult use in 2016 as expected and adult use sales become operational in 2018, the state market is expected to reach nearly $6.6 billion by 2020," said Giadha DeCarcer, Founder and CEO of New Frontier. While U.S. investors are in a frenzy to capitalize off of the enormous California cannabis market, Canada is a larger market with less competition.
Unlike Canada, U.S. firms are unable to ship cannabis across the country, so if a business wants to expand into another state it must either do a licensing deal or build a facility in the legal state it chooses to enter. This makes it very difficult and costly to expand domestically, while in Canada, they are able to have massive grow facilities that can service the entire country.
Share Structure
Aphria has 64,984,290 shares outstanding. The fully diluted share count is 92,626,775; 56% of their warrants/options are priced above the current market price of $1.40. The CEO & founders of the company own 34% of the outstanding shares. This demonstrates how vested the management team is and the fact that their long-term objectives are aligned with shareholders.
Competition
With 18 companies that have a license to cultivate and sell in Canada, the competitive landscape is even more appealing than it looks. The patient count is growing at a 10% rate monthly and is projected to be close to 65,000 by the end of May. In a recent article, Carl Merton, Aphria's CFO said they expected to have 4,500 patients by the end of May. Based on those figures, Aphria has approximately 7% market share.
While that doesn't jump out as an imposing force in the industry, Aphria has been very methodical in its approach as they scaled with the growth of the industry as opposed to initially overbuilding. Now that recreational cannabis will begin in 2017, Aphria has made strategic investments to ensure they will be a market leader in the Canadian cannabis market.
Currently, there is over 1 million square feet of approved production capacity licensed in Canada. Of that ~1 million square feet of growing capacity, Aphria currently is licensed for 44,000 square feet. While that may not seem like a large chunk of square footage in comparison to the market, Aphria inked arguably the best deal in MMPR that went completely unnoticed.
On April 7th, 2015, Aphria "acquire[d] approximately 360,000 square feet of existing production space, located on 36 acres of land in Leamington, Ontario for total consideration of $6.5 million. As part of the agreement, Aphria acquired vacant lands that will allow it to build an additional 640,000 square feet of growing space… The Company anticipates closing the transaction on June 30, 2016. Based on current average retail selling prices and production yields, Aphria generates $580 per square foot a year." After the closing of this deal, Aphria will have the largest production capacity available of any company in Canada.
Of the 18 companies operating in the market, there are 8 publicly traded companies:
Aurora Cannabis (OTCQB:ACBFF) - 3,000 patients
Aphria - 4,500 patients
Canopy Growth Corporation (OTC:TWMJF) - 12,000 patients
Emerald Health (OTC:TBQBF) - N/A (last reported earnings were 12/31/15 and they had $31k in revenue)
Mettrum (OTC:MQTRF) - 6,145 patients (as of February 2016)
Organigram (OTCQB:OGRMF) - ~2,000 patients*** (as of 10/21/16)
PharmaCan (MJN.v) - N/A (Holding company that stakes in multiple Licensed Producers)
Supreme Pharmaceuticals (OTCPK:SPRWF) - 0 patients*** (licensed to produce but not to sell)
Of those 8 publicly traded companies, data was available for only 5 of those companies. Those 5 companies combined for 27,645 patients, which equates to 42% of the market (27,645/65,000). Readers should also take into account that some of those patient figures provided by some of those companies are dated and that figure is higher. The point that is trying to be made is that although there are 18 companies growing and selling cannabis, 5 of those companies control 42%+ of the market. There are many private companies that have less than 1,000 patients and don't have the financing to build out a facility that can handle any more patients.
This will cause M&A to spike or many of these smaller licensed producers will not be able to survive due to the bigger company's economy of scale in 100+ thousand square foot facilities. On June 24th, 2015, the industry saw the 1st deal to consolidate when Tweed acquired Bedrocan in an all-stock transaction. News of M&A should heat up as licensed producers look to strengthen their brands ahead of the recreational market opening up next spring.
The purpose of the information above was to create an inverted pyramid of the industry and demonstrate how this already small market is smaller than many believe. Now, we'll delve into what makes Aphria a compelling investment in comparison to the other licensed producers.
Low Cost Producer
Aphria produces a gram of cannabis for $1.67 and its "All-in" costs are $2.22 ("All-in" costs include packaging, shipping, testing, etc.). Aphria is a low-cost producer because they are growing in a greenhouse in Leamington, Ontario ("The Tomato Capital of Canada") that provides a conducive environment for growing. They boast Gross Profit margins of 74% and that will only increase as they scale their 44,000 square foot facility to eventually 1 million square feet.
Aphria's low-cost advantage will only strengthen as they scale because their cost structure is 42% fixed and 58% variable. With 42% of their costs fixed, Aphria will substantially reduce their COGS as the fixed costs will be spread across a larger facility and that will make them the lowest cost producer by a wide margin. Greenhouse growing is usually cheaper than indoor growing and the fact that Leamington is one of the sunniest parts of Canada allows Aphria to use natural sunlight more than any other greenhouse grower.
Strong Balance Sheet & Profitability
Aphria has one of the cleanest balance sheets, thus enabling them to finance their growth without the fear of massive dilution in excess of their fully diluted share count. This provides investors with the peace of mind that they will not be heavily diluted which could significantly hamper ROI for investors in the future. Another essential differentiating factor is the fact that Aphria was the 1st publicly traded company in the Canadian market to report a quarter of being cash flow positive. This will enable Aphria to grow their business organically through their operating cash flow and it demonstrates management's prudent approach to building Aphria with the market as opposed to overextending itself too much.
Aphria grew revenue 32% quarter over quarter, while lowering COGS, which in turn increased Gross Margins by 500 basis points quarter over quarter. EBITDA for the 3rd quarter was $423,350, translating into a 15.8% EBITDA margin that has the potential to reach 30%-40% as Aphria scales up production.
As of April 2016, Aphria has $14 million in cash and working capital totaling $17.7 million. Aphria has $0 in long-term debt and only $1.6 million in current liabilities. With a current ratio of 11, Aphria has a fortress balance sheet that will enable them to self-fund growth without the need to tap into the capital markets for some time.
Aphria may want to go into the capital markets if they believe it is prudent to accelerate growth for the incoming recreational market but it seems unlikely with all the cash they can generate from exercising all the outstanding warrants and options. If Aphria exercised all the outstanding options/warrants, it would bring in approximately $36 million. The weighted price of all the options/warrants is near the current market price, which shows management's strong commitment to serving shareholders.
Management Team
Experience in the cannabis industry is non-existent due to the nascence of the legal cannabis market. However, Aphria has assembled an impressive management team to help navigate through this new industry. Aphria's founders are Cole Cacciavillani and John Cervini who are agricultural veterans with over 60+ years of agricultural experience between them.
Cole Cacciavillani is an industrial engineer and son of Floyd Cacciavillani, the founder of CF Greenhouses. Cole got involved in the business in 1979 and by 1990, Cole was in charge of the day-to-day operations. CF Greenhouses was originally growing produce and eventually pivoted to grow potted flowers (geraniums, poinsettias, etc.). The Cacciavillani family is very respected in the Leamington area and in 2012, CF Greenhouses turned their sights on cannabis, and in 2014, they were granted a license. Cole Cacciavillani is the CEO of CF Greenhouses, which is the reason why Aphria is able to scale up quickly as they are able to replace the potted flowers for cannabis quickly as the greenhouses are already retrofitted to grow crops efficiently.
John Cervini is a 4th generation vegetable grower and chief agrologist at Aphria. Mr. Cervini, along with his brother quadrupled the family's farming operation and founded Lakeside Produce. The company grows cucumbers, grape and cherry tomatoes, and a multitude of other vegetables sold in over 100 SKUs. Most of the product is sold in Wal-Marts and Costcos in the United States.
Vic Neufeld is a Chartered Public Accountant and former partner at Ernst & Young. In 1993, Mr. Neufeld became the CEO of Jamieson Laboratories, Canada's largest manufacturer and distributor of natural vitamins, minerals concentrated food supplements, herbs and botanical medicines. When Vic took the helm of the company, Jamieson was generating $20 million in revenue and had 7% market share. By 2014, Vic had grown the company's sales to over $250 million and increased the firm's market share to 27%. In January 2014, Jamieson Laboratories was sold to CCMP Capital Advisors in excess of $300 million.
Catalysts
In June 2015, the Supreme Court of Canada expanded the scope of medical cannabis by allowing cannabis to be consumed in edible products like oils, food products, etc. The ruling came in June of 2015, and since the ruling, the MMPR has been licensing producers to produce and sell oils. Aphria expects to begin sales of their oil products in June of 2016, which should help drive revenue growth. Many people, especially doctors don't want people to be smoking as a delivery method for medicine. With oils, this allows doctors to be more comfortable prescribing cannabis because oils can be dosed and administered in a safe and effective method.
With recreational cannabis coming online in spring of 2017, this will impact the entire industry, but Aphria will be one of the biggest beneficiaries. With recreational cannabis expected to be a $7-$10 billion industry, Aphria will be able to grow nearly all of its 1 million square feet of production capacity, thus enabling them to really experience economies of scale like no other producer. Earlier in the article, Aphria mentioned that they could generate $580 of revenue per square foot of production capacity annually. As they build up their production capacity, technological and refined growing practices will allow them to generate even more money per square foot and reduce their per gram COGS.
Current Valuation
Based upon Aphria's 3rd Quarter revenue growth of 32% quarter over quarter, it is reasonable to assume Aphria will be able to generate at least a 30% compounded annual growth rate [CAGR] quarter over quarter as the general Canadian medical cannabis market is expected to grow at 10% compounded month over month for the foreseeable future (the market is starting from a low base so % growth will be high initially). Even though the market will grow significantly, the CAGR of the market is substantial as shown in the image below.
The medical market alone was projected to grow from 40,000 to 450,000 by 2024, representing a market CAGR of 27.38% annually.
A 30% CAGR month-over-month growth rate for Aphria may seem very aggressive but that is only accounting for medical cannabis sales and not even including recreational sales that will increase sales growth exponentially. Also, last quarter, sales only grew 32% quarter over quarter because the company didn't have enough in inventory to onboard more patients. With the large production increase, there will certainly not be any production bottlenecks in the future.
ASSUMPTIONS
30% quarter over quarter CAGR 25% EBITDA Margins Using Fully Diluted Shares Count (92,646,775) Only medical market (no recreational market) All $ are Canadian Dollars
For the 9 months ending February 2016, Aphria had revenue of $5,657,613.
Q1 Revenue = $950,740
Q2 Revenue = $2,026,975
Q3 Revenue = $2,679,898
Projected Q4 Revenue = $3,483,867
Projected Q4 EBITDA = $627,096 Projected 2016 Sales = $9,141,480
Projected 2016 EBITDA = $679,299
For the 2017 Fiscal Year, I'm projecting revenue of $28 million and EBITDA of $7 million. Based upon those assumptions, Aphria would have EBITDA on a fully diluted basis of $0.08 per share. Aphria is trading at a 2017 EV/EBITDA multiple of 16 with long-term tailwinds that will allow Aphria to grow the top and bottom line in excess of 100% for the next few years. Investors will be paying a premium for cannabis companies as the market is the fastest growing industry in North America and also because there is a scarcity of quality cannabis companies to invest in, in the public markets.
However, looking at the long-term analysis of the company, assuming a mature recreational market allows investors to pay up as they see the massive $7-$10 billion recreational market on the horizon, industry experts project the wholesale cannabis market to be $4 billion. Of that $4 billion, Aphria had mentioned in a press release that the 1 million square feet of growing could generate $580 per square foot. Under those assumptions, if Aphria built out the entire 1 million square feet of production capacity, Aphria would be able to produce $580 million worth of cannabis.
When Aphria is able to produce that much product, they will be able to theoretically operate at full capacity and that would only equate to 14.5% of the wholesale market share ($580 million/$4 Billion). With Aphria capable of generating $580 million in revenue and EBITDA margins of 25%, it is very plausible to see Aphria capable to generating $145 million in annual EBITDA; that would equal $1.57 in EBITDA per share. With the possibility of earning $1.57 per share in EBITDA down the road, it's no wonder you won't be able to purchase Aphria at attractive present multiples with a company with that much earnings potential.
Risks
With all of these grandiose projections, there are some risks that could derail the long-term earnings potential of this company. One of the biggest threats to Aphria is how they will fit inside of the recreational framework that will be decided upon later this year. Bill Blair, a former Toronto police chief and who is now involved in quarterbacking the legalization platform will play a major role in how the licensed producers in Canada will operate under a recreational program.
Currently, the licensed producers are the only legal source for medical cannabis patients to obtain medicine from but there has been a massive influx of dispensaries popping up throughout Canada that have been dispensing medical cannabis to patients through a storefront. Aphria and the rest of the licensed producers in Canada have to ship cannabis through the mail, but the dispensaries provide patients with quick and easy access to cannabis.
However, these dispensaries are operating illegally and don't have a license to cultivate and sell cannabis. While these dispensaries have not gone through the rigorous inspections that the licensed producers have, there is no way to verify the QA/QC of the product that is being sold by these shops. The dispensaries in Canada are estimated to bring in revenue of $500 million a year, while the legal market that Aphria operates in is worth about $200 million a year right now.
On Tuesday, Bill Blair praised Licensed Producers and blasted dispensaries saying that they are "reckless" and trying to make a "fast buck." While that is encouraging to hear, these illegal dispensaries continue to operate and hamper the already fast growing legal market to not grow as fast as it should be growing. In addition to criticizing the dispensaries, Blair endorsed the Licensed Producers and was blown away by the growing environments of the regulated licensed producers.
Another risk that could hamper Aphria's growth is Health Canada issuing more licenses out. Currently, there are 31 licenses that have been issued. While that does pose a risk to Aphria's ability to supply 14.5% of the wholesale market share, Health Canada has been very slow at issuing new licenses. Since 2015, Health Canada has only issued 8 licenses (only 3 licenses to cultivate and sell).
Health Canada has been slow to issue licenses but with recreational cannabis coming soon, they might be issuing more licenses. With more licenses, pricing could come down but being that Aphria will most likely be one of the lowest cost producers, if not the lowest cost producer, Aphria will be able to still remain highly profitable in a market where prices may come down from the average selling price of $7.50 a gram.
In an environment of falling prices, Aphria's margins may be impacted. While some industry experts believe that EBITDA margins could be 30%-40%, for conservative measures, 25% EBITDA margins were used in my analysis.
Currently, the licensed producers are vertically integrated and don't have storefronts, but instead ship cannabis through the mail. The current method allows for superior operating margins, as the companies don't need to operate retail locations. With the recreational cannabis framework still left to be decided, one of the most hotly debated topics is where the point of sale of cannabis will be. Pharmacies, liquor stores, and regulated dispensaries are all vying to be the supplier of cannabis.
There is some speculation that the LPs themselves could open up stores themselves making themselves vertically integrated even more with retail and online ordering capabilities. In the United States, medical cannabis sells at a lower price than recreational cannabis. So, if LPs opened up their own retail outlets or wholesaled to another entity, they could still sustain most, if not the entire margin they expected to earn in the mail-only program because they could charge more for recreational sales.
Conclusion
After reading 100 Baggers by Chris Mayer, Aphria seems to have a lot of the same characteristics as many of the companies in the book that returned investors 100 times on their money. Aphria has accelerating growth, a low multiple on future earnings potential, a moat with their low production costs, heavily vested owner operators, and excellent capital allocation by the management team. Those ingredients all mixed together makes Aphria a very compelling long-term stock to buy and stick in your coffee can portfolio.
This stock was a beast but with the $50M short prospectus offering today it is not looking good. That represent a lot of shares to be sold in to the float at a "best effort basis"!
Hope you all did the same as me and took your gains because this is going to plummet until all those shares 34 million shares are sold.
I drop by every now and then to read this board and follow up on developments of this "company" and I can't help but think of all the people that got scammed out of their money...
It's a shame that SEC doesn't do more to protect investors from such companies.
Any of you buy in the .70s for a nice gain??
Sold my 1.51 position today at 1.88 for a nice $4800 profit.. hope it was a bad decision but I am fairly confident we will see 1.50 again shortly. I'll be back in full, holding the cash for now:)
There's no doubt these pot stocks will be worth much much more in 5 to 10 years. What it comes down to is who will have the guts to hold for that long to see these profits!!
Personally when I have an investment up more than 20-30%, i find it very difficult to hold and not sell..
The fact that Dundee Securities were confident enough in OGI to buy 8,500,000 shares at $1.05 through a bought deal is impressive. They spent $9,000,000 up front!
OGI is the Canadian pot stock with the most upside potential currently in my opinion. Got in this week after the bought deal PR.
Messaged an admin about the news ticket issue and it has been fixed.
The news items that are now appearing are for MT:TSXV and no longer for MT:NYSE.
Looks like the 'news' section on this board has a glitch! All the recent 6-k news items are not for this company but for MT on the NYSE (ArcelorMittal Steel).
Sorry for that quadruple post, my phone was bugging out!
Probably a bit of profit taking mixing with some additional financing by the company.
Those two factors mixed with relative low volume is likely pushing the stock price down.
Great opportunities to load up shares and wait to sell high during the next positive press release. Or simply hold if you are a medium to long term investor and believe the futur short term gains remain undervalued.
Probably a bit of profit taking mixing with some additional financing by the company.
Those two factors mixed with relative low volume is likely pushing the stock price down.
Great opportunities to load up shares and wait to sell high during the next positive press release. Or simply hold if you are a medium to long term investor and believe the futur short term gains remain undervalued.
Probably a bit of profit taking mixing with some additional financing by the company.
Those two factors mixed with relative low volume is likely pushing the stock price down.
Great opportunities to load up shares and wait to sell high during the next positive press release. Or simply hold if you are a medium to long term investor and believe the futur short term gains remain undervalued.
Probably a bit of profit taking mixing with some additional financing by the company.
Those two factors mixed with relative low volume is likely pushing the stock price down.
Great opportunities to load up shares and wait to sell high during the next positive press release. Or simply hold if you are a medium to long term investor and believe the futur short term gains remain undervalued.
It's a great buying opportunity right now. It will keep hitting higher highs the rest of the year without a doubt.
Every analyst has a strong buy rating for APH. I'm confident the PPS will keep a steady upward trend!
Because it's 420, National weed day!
Complete speculation, don't get me wrong.
Here's an article about it:
http://montrealgazette.com/storyline/420-pot-to-be-legalized-on-national-weed-day
I'm betting the federal government will make a big announcement in regards to the legalization of recreational use next Wednesday, April 20th.
Just found out about this stock today ready this article
I will do some DD and likely start following the board.
I am invested in CGC.V as well as APH.V. I am confident this sector will be leader in the next few years. I am also betting on some federal announcements or updates next Wednesday for '420'.
Managed to sell a bit on the way down, buying back in now. Good opportunity at these prices!
Yeah that was foreseeable! Not worried about this rebounding though.
Medicinal marijuana users await ruling on right to grow their own
www.cbc.ca/news/politics/medicinal-pot-grow-own-federal-court-1.3461565
Absolutely. Needs a few things to go in it's favor such as legalization of recreational marijuana but I'd say it is perfectly placed to see continued growth in the following years.
Positive speculation. It could happen but not until the share price is around $30-$40!
The financials are going to be excellent IMO.
Looking real good here, great long term potential.
Thankful I only took a small gamble on this one a few months ago... my $2K is worth something like $40 right now! Haha I fucked up good here!!
I think he got stopped like a lot of us who were long here...
Global_Hemp_Group_Granted_Industrial_Hemp_License by Health Canada
This is very positive news for the company and it's investors.
http://globalhempgroup.com/global-hemp-group-granted-industrial-hemp-license-by-health-canada/
North Vancouver, BC — (January 25, 2016) — GLOBAL HEMP GROUP INC. (“GHG” or the Company”) (CSE: GHG / FRANKFURT: GHG / OTCQB: GBHPF) is pleased to announce that its application for an Industrial Hemp License in Canada for 2016 has been approved by Health Canada, Office of Controlled Substances, Industrial Hemp Section.
The license authorizes GHG to possess industrial hemp in the form of seed and grain, to export the seed and grain out of the country, as well as sell and/or provide viable grain domestically. As a result of this license, the Company will no longer be required to use licensed intermediaries, as has been done to facilitate previous orders. This license will greatly enhance the Company’s commercial opportunities, as the number of inquiries from processors and manufacturers in countries around the world continues to build momentum as more consumers learn about the nutritional benefits of hemp super foods.
Further to its news release of November 17, 2015, the Company is also very pleased to announce that it is in the process of shipping a second, larger scale order of hemp seed to Colorado Hemp Works LLC (CHWS) in Longmont, Colorado. The current order of 3 tons of whole hemp seed will be used for further, large scale testing of their oil pressing technology. Upon successful testing, GHG and CHWS will enter into a longer term supply contract to supply CHWS from Canada until commercial quantities of seed are available in Colorado.