Yesterday, at the Kase Learning Short Selling Conference, famed short-seller Gabriel Grego of Quintessential Capital Management presented 129 slides that show why he and Nate Anderson of Hindenburg Research believe Aphria Inc. (NYSE:APHA) (TSX:APHA) is a “black hole” for shareholders and investors.
While Aphria put out a release last night, and another one this morning defending its Latin American acquisitions and deals, the bears put forth a fairly bullet-proof argument as to why investors should steer clear of the company.
Following the release last night, Quintessential Capital Management sent out a Tweet stating that “Aphria issued a ‘response’ that responded to NONE of our allegations. We stand by our report with 100% conviction.”
Quintessential followed it up this morning with another Tweet, stating that, “QCM has read with great amusement the latest $APHA press release. The company avoids to address and, therefore, in our opinion, implicitly admits to all of our key allegations.”
According to Bloomberg, Grego’s report caused “BMO analyst Tamy Chen cut her price target for Aphria to C$9 from C$22,” due to “considerable uncertainty surrounding the stock.”
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