Aphria stock is one of the outstanding marijuana stocks in the booming industry. For investors, Aphria Inc (TSX:APHA) (NYSE:APHA) has been on a good run lately, recovering from its 75% dip to $4.00.
Aphria stock has since recovered 150% from its lows, returning up to $10.53.
Short Sellers Hype
Some months back, short sellers hit Aphria stock heavily as bearish analysts alleged that the management of Aphria was involved in unscrupulous behavior. Short sellers indicated that the company was engaging in questionable activities. One such red flag was the acquisition of phantom asses in Latin America in which short sellers suggested that the company engaged in double-dealing and other related transactions.
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The board of directors of Aphria Inc engaged a special committee to investigate the allegations. The committee established some troubling concerns, but they nonetheless vindicated the company. Perhaps the most outstanding outcome from the committee was that the assets in Latin America did indeed exist and that they were moving towards commercialization.
Key Steps
The company has faced concerns of conflicting interests, and recently there were management changes that saw Vic Neufeld step down as CEO. The former CEO was implicated in the various allegations that short sellers made. Irwin Simon has since been appointed as the interim CEO.
On April 15, after releasing its earnings results in which the company reported $0.2 CAD loss per share, Aphria stock plummeted. The main reason behind the drop in APHA stock was that the company missed analysts’ estimates of a loss per share of $0.045 CAD for the quarter.
Although revenue grew, overall sales declined, and since the release of the earnings report, Aphria stock is now down 24%. Do you think there is still hope for APHA stock now that the company has cleaned house?
Featured image: Canva
