2019 Marijuana Stock Spotlight: Aphria Inc. (APHA)
Late 2018 was one of the worst times for marijuana stocks.
Most plunged on a buy the rumor, sell the news reaction following Canada’s anticipated legalization of recreational marijuana.
However, with the bad times firmly behind us, we found incredible opportunity in a stock undeserving of such a low valuation – Aphria Inc. (APHA). Since mid-October 2018, the stock plunged from just over $16 to $7.90 a share. But’s just beginning to rebound.
Aphria: Plenty of reason for higher highs
For one, the stock recently listed on a major exchange.
In fact, it’s now listed on the NYSE along with Canopy Growth (CGC) and Aurora Cannabis (ACB). This now makes the stock much more accessible to a larger base of investors.
Also, with recent partnerships, supply agreements, and acquisitions, APHA could become Canada’s third biggest supplier with annual production of 255,000 kilograms by 2019.
Plus, given the expected demand in Canada, the stock could be one of the most explosive.
In fact, reaching the Canadian recreational market shouldn’t be a problem for the company either. It already secured major supply agreements with all of Canada’s provinces.
It’s agreement with Southern Glazer’s Wine and Spirits is substantial.
This could be advantageous when the sale of cannabis-infused drinks become popular. W
While APHA has yet to partner with a major beverage company that could change, given Constellation Brands and Molson Coors interest in the sector.
Another one of its acquisitions was with Nuuvera for $670 million, which will help to expand APHA’s international presence to 11 countries. The company also entered into an agreement with about 1,300 Shopper Drug Marts in Canada to be their licensed medical cannabis supplier.
Even international growth shouldn’t be an issue.
The company just announced an acquisition of pharmaceutical distributor CC Pharma, which will help strengthen its position in countries, like Germany. Germany, by the way, has one of the biggest medical marijuana markets outside of North America. In addition, APHA’s acquisition of LATAM Holdings increases its operations in Latin America and the Caribbean markets.
While the marijuana stock pullback was substantial in recent month, it created a handful of opportunities – like Aphria – that smart investors just can’t ignore.
Remember, the marijuana story has just begun to take the world by storm.
Legalization in Canada, higher approval ratings in the U.S., international growth, and explosive corporate interest has changed the way we look at marijuana investing forever.
As we know, Canada’s cannabis industry could produce sales of up to $7.1 billion in 2019, with up to $4.3 billion coming from the recreational market, according to research firm Deloitte.
Controversial or not for investors, it’s something we just can’t ignore.