Aphria broadens value for investors

Article Excerpt

APHRIA INC. $8.31 is a hold. The company (Toronto symbol APHA; Manufacturing & Industry sector; Shares outstanding: 289.3 million; Market cap: $2.4 billion; No dividend paid; Takeover Target Rating: Medium; www.aphrirainc.com) is a leading Canadian producer of medical and recreational marijuana. Aphria will now buy Atlanta, Georgia-based craft beer maker SweetWater Brewing Co. for $250 million U.S. in cash and $50 million U.S. in shares. Following the purchase, beer will supply 15% of Aphria’s total revenue. The new operations also give the company a platform to launch cannabis beverages in the U.S. as more states legalize marijuana. It also plans to sell SweetWater’s products in Canada. However, cannabis stocks like Aphira remain highly risky due to strong competition from illegal producers. Aphira is a hold, but only for highly aggressive investors. investors…