Aphria Is a Convincing Buy-and-Hold for Cannabis Investors – Investorplace.com

Canadian cannabis producer Aphria (NASDAQ:APHA) has faced the same issues that other marijuana companies have dealt with for the past couple of years. Due to an oversupply of the product and disappointment with the cannabis derivatives market, Aphria stock hasn’t had a sustained breakout in a long time.

Marijuana plants growing in a greenhouse.

Source: Shutterstock

The onset of the novel coronavirus didn’t help Aphria, either. The idea that cannabis companies would flourish because everybody would stay home and smoke pot turned out to be more of a fantasy than a reality.

So, where does this leave prospective investors? We can certainly say that on a historical basis, the Aphria stock price is low. On the other hand, price isn’t the same as value. As Warren Buffett once famously said, price is what you pay but value is what you get.

What do you actually get with Aphria stock? Real value, or just a value trap? That’s the billion-dollar question and investors deserve an answer. So, let’s check the price action of the stock and then see if the company is on solid financial footing.

A Closer Look at Aphria Stock

The mania surrounding cannabis stocks of yesteryear can be seen in the historical price action of Aphria stock. Investors might recall the massive run-up to the $17 level in January of 2018. Then there was another spike to the $15.50 area in September of that year.

It’s been a slow, awful ride down since