Aphria stock has been showing solid momentum so far in August after reporting a surprise profit earlier this month. Let’s take a look at Aphria Inc (TSX:APHA) (NYSE:APHA) to see what’s been going on after the recent announcement.
Over the course of the past few months, plenty of stocks have recorded declines due to a sector-wide slowdown. Some of the best-known stocks in the industry have been pummeled, but even among a slowdown of sorts, certain interesting picks still exist
One of those stocks is that of the vertically integrated Canadian company Aphria Inc, and according to experts, APHA is a stock that is still relatively undervalued when compared to similarly-sized companies. Hence, it is believed that Aphria could well prove to be an excellent pick for investors at this point in time.
One thing that needs to be pointed out is that Aphria is one of the biggest cannabis producers in the industry, and at this point in time, it ranks third in terms of production capabilities. In 2019, the company expects to produce 255,000 kilos of cannabis.
However, that is not all. It is important to point out that Aphria Inc has also managed to grow its international presence significantly after acquiring the German firm CC Pharma. Germany remains one of the biggest prizes for cannabis companies, and Aphria has managed to create a presence in Europe’s biggest economy.
At the time of writing, Aphria stock is trading higher by 2.50% at $6.72 on the NYSE.
On the other hand, Aphria has also diversified aggressively into new products like concentrates and vapes. As a matter of fact, those products are expected to contribute handsomely to the company’s revenues in the near future. The Chief Executive Officer of the company has already predicted that concentrates and vapes could make up as much as 30% of the company’s revenues by 2021.
In that regard, it is also necessary to point out that Aphria is one of the few companies that has teamed up with Pax Labs, the well-known American vaporizer company, and the partnership could well prove to be a game-changer as the demand for vapes rises.
At the end of the day, the ultimate aim for any company should be to enter the United States market, and as of now, this is a strong possibility for Aphria Inc, particularly in terms of moving through the hemp market.
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