Hello Steemians. I have been investing in the marijuana sector for quite some time now. And there seems to be alot of different opinions on Aphria and how it dropped from 24$ down to 14$ish now.
Some say its a dangerous play, some say its a bargain now. Here is my take with numbers.
Based on CANADA only operations:
Growing Capacity 170,000 KG = 170 million grams
At a reasonable $1.25 profit per gram we get $212.5 million net income
If you divide that by 175 million shares outstanding, you get $1.25 EPS.
And using an average earnings multiple of 20, you get more than $24.
And this isnt even considering future expansion/more growing capacity etc.
The main 'concern' holding this stock back imo was its delisting threat because of its US invovlement. However that as since been dealt with as it spun off its us investments. Currently there is also uncertainty about aphria international (reported by globe and mail). This might seem risky to some, but considering the potential upside just from fair valuations makes aphria worth considering imo
