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  Aphria reported horrible FQ3 results for the period ending February. The Canadian cannabis company only generates 35% of revenue from cannabis sales. The stock is far too expensive with a $4.4 billion market valuation and their prime business only generating ~$210 million in run-rate revenues. Looking for a portfolio of ideas like this one? Members of Out Fox The Street get exclusive access to our model portfolio.  Learn More » Heading into the  Tilray  ( TLRY ) merger close,  Aphria  ( APHA ) reported a horrible quarter. The company further confirmed why overpaying for Canadian cannabis stocks is never warranted. My  investment thesis  remains negative on Aphria and the new entity despite a nearly 50% dip from the peak in February. Read the full article on Seeking Alpha.  Update - May 3 The deal closes with the new Tilray having a $8 billion valuation. The current FY revenue target is only $790 million, but the numbers include $350 millio...

Article originally published to Out Fox members back on Oct. 5.  Aphria is a cheap Canadian cannabis stock up $1 since this call. Twitter remains favorite social media play. Sample research from  Out Fox The Street : Aphria ( OTC:APHA ) For a long time, Aphria was been a favorite amongst the Canadian cannabis LPs due to a cheaper valuation and stronger execution. Back on Sept. 24, the stock was  highlighted  as a better Canadian cannabis pick than  Aurora Cannabis  ( OTC:ACB ) when Aphria traded at $4.31. Aphria has gotten a big boost today with Cantor Fitzgerald hiking the price target by C$2.50 to C$15.50. The amount equates to $11.68 for a stock trading at only $4.41 before the market opened today. Some key points of the bullish call for the quarter ending August: Canadian Rec. revenue to grow 37% QoQ. Canadian Rec. EBITDA margins to top 20%. FQ1'20 revenues of C$171M. FQ1'20 EBITDA of C$16.3M. A big key to the quarterly results is the expectation o...

Aurora Cannabis was in talks with Aphria on a merger of equals. The deal was estimated to generate C$200 million in synergies. The stocks could have had up to 50% upside on a merger. Over the last week,  Aurora Cannabis  ( ACB ) and  Aphria  ( APHA ) apparently discussed a  merger  with talks falling apart. A merger would've made the new entity into a global giant in the cannabis space after the Canadians have lost a ton of market leadership to U.S. firms in the last year. The synergies alone could make this a no brainer deal as Aurora Cannabis already had made an impressive transformation on costs making the  long-term investment thesis  on the stock more bullish. Read the full article on Seeking Alpha.  Disclosure: No position mentioned. Please review the disclaimer page for more details. 

Stocks to watch on Tuesday: Glu Mobile (GLUU)  - the stock is soaring from an addition to the S&P SmallCap 600 index. The stock is incredible cheap at slightly over 2x bookings estimates. Glu Mobile has a huge gap to close here.  Aphria (APHA)  - the stock is up over 20% on a relief rally following a big dip in the stock price since the start of September. The Canadian cannabis company saw revenues decline from the prior quarter and adjusted EBITDA from the cannabis operations drop. The key was the reaffirming of guidance: revenues $650 million to $700 million and adjusted EBITDA of ~$90 million. The stock has a market cap of only $1.3 billion or about 14x EBITDA estimates. Aphria should bounce from here.  Snap (SNAP)  - the social messaging stock appears a good short, if the stock fails to break above $14 here. Snap shouldn't be above a market cap of $20 billion while still generating large EBITDA losses on revenues of $2.2 billion next year. ...