Aphria Stock: Worth buying or not?

Before COVID-19 hit the United States and Canada, the cannabis industry was excelling with the financial results. The performances of the stocks over the stock markets were towards a leading mode. Aphria is one of the largest cannabis companies with high market capitalization. APHA stocks went low last year in August by about 25% of its value.  There were some other big names which even turned down to half of their price during that phase.

So, would it be a good idea to invest in Aphria stocks now? Let us look into the most recent results of the company and make a wise decision for your investment.

What were the issues?

In 2018, it was revealed that the company’s inside management attained profit from the acquisition of LATAM holdings by the company.  The company settled the debt of one million of LATAM and issues 15.6M shares for the same.  However, the researchers claimed that this deal was overpaid and the executives did the same for enriching their bank accounts. This was a matter of debate and even the CEO Mr. Neufeld designed after this issue. The company even had to pay huge impairment charges for misguided acquisition. These events led to the development of suspicion in the minds of people for APHA.

Latest Aphria Statistics

Aphria reported its full-year earnings for 2020 on July 29 (till the end of May 2020).  This report couldn’t impress the investors as the company reported a loss of about CA$98.8 M with only about one-sixth of this value’s net income in the previous quarter. The investors even sold APHA stocks rapidly but some analysts call it a wrong decision.

It is not good to get any unexpected losses for any company. The company got a net loss of 65% due to the impact of pandemic all over the world. The impairment charges of the company have added to a lot of its losses and even cut shot the earnings. The latest earnings report of the company wasn’t that good and hence, the stock prices also went down.

2020 was a year at which there were many expectations from the cannabis derivative market. Coronavirus pandemic ruined the plans of many pot growers and there were many downs reported by the major players of the industry. Aphria focused on vaping products and even kept its promise by being the leading name in the vape industry in Ontario (largely populated region). APRA has been doing good business in adult-usage of recreational marijuana and it holds a positive position in the company in terms of gross revenue in Q4 in this segment. The subsidiary CC Pharma is another plus to be associated with APHA and it reported the revenue of CA$97.1M during the last quarter.

Aphria’s position is still considered to be strong by some analysts. The stocks might seem pricey but are affordable to its competitors. Aphria can be a good buy and is amongst the best cannabis stock purchases which could be made now.

About Travis Garlick 1791 Articles
Been writing about and trading stocks since 2013. Manage a group of micro-cap investors on Facebook with over 15,000 members. Turned $8,500 into 185k the first year I started trading stocks and haven't looked back.