APHRIA INC COM NPV (OTCMKTS:APHQF)
Canada ramping up plans for the legalization of marijuana for both medicinal and recreational use can only mean one thing for APHRIA INC COM NPV (OTCMKTS:APHQF) – growth. The company stands to be one of the biggest beneficiaries of the legislation as it already profitable in a space where competition fierce.
Stellar Earning Solid Balance Sheet
While there are hundreds of publicly traded marijuana-related companies, many of them are yet to turn in any profit, even after aggressive investing, in a bid to bring products to market. Aphria is among the very few in the space that seems to have found a way of balancing investments and returns. The fact that the company has been able to grow its top line by triple digits shows how strong the execution of its business model is.
Stellar third quarter earnings marked a fifth consecutive quarter of growing profits and revenue – having doubled in the quarter compared to the previous year. The company’s cash flow have also increased by over $6 million putting it a prime position to be able to pursue new opportunities for growth.
APHRIA INC COM NPV (OTCMKTS:APHQF) growth should continue after recently receiving the green light to complete the Phase II expansion of one of its facilities. The expansion would bolster the company’s marijuana production capacity to 8,000kg and its Phase III expansion would take production capacity to 22,000kg annually. The Company recently raised C$100 in new financing.
Aphria Diversified Portfolio
APHRIA INC COM NPV (OTCMKTS:APHQF) already has an extensive head start in the multi-billion industry which gives it an edge in terms of supply systems as well as government contracts and capital.
Boosting the company’s prospects in the industry is the fact that Aphria is highly diversified and does not rely on only one market for sales. APHRIA INC COM NPV (OTCMKTS:APHQF) is a big player in Florida cannabis market as it owns 37.6% of Liberty Health Services. The Company also has exposure to the Arizona market through its 18.5% stake in Copperstate Farms Investors. The company also owns smaller stakes in a number of marijuana-related companies which gives it additional access to a large number of markets.
APHRIA INC COM NPV (OTCMKTS:APHQF) shed 7.06% in market value in Tuesday’s trading session, ending the day at $3.52 a share.
I have no positions in any of the stocks mentioned, and have no plans to initiate any positions within the next 72 hours. All information, including any data, is provided without any guarantees of accuracy.
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About the author: Monica Grey has an undergraduate degree in Accounting and an MBA she earned – with Honors. She has six years of experience in the financial markets and has been an analyst for the past two years.