The cannabis industry is in for a treat, especially Aphria inc.
The cannabis industry has taken a hit in the recent months due to burning cash at an alarming rate. This may not be the full story for the upcoming months. The demand for marijuana is growing rapidly, especially due to people staying home as quarantining becomes necessary worldwide. As of now, you can’t bet on all cannabis companies. We see Tilray failing due to its inability to compete with its industry peers. Canopy growth company’s cash is tight but is expected to see continuous growth as it holds a dominant position in Canada. With all of this said, taking a closer look at one company shows some future upside. Aphria Inc. (APHA) holds a strong future with the demand on the rise. Consequently, Aphria has good chances of winning. Aphria’s cash on hand is 53% of its market cap. Although the cannabis industry as a whole has dropped 57% since Feb. 20, expect to see some major losers and some respectable winners as the industry is new with a long strong future ahead of it.
March 20, 2020