Below is a brief note written by CEO Keith McCullough:
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After a 3-day (no volume) bounce to lower-highs, there's still plenty of FOMO in the US Equity market. That's why I'll stay with the #process, signaling SELL on my Independent Research team's Bearish @Hedgeye TREND short ideas. One of our favorite Cannabis Shorts remains Aphria (APHA). Here's an excerpt from Shayne Laidlaw & Howard Penney's recent Institutional Research note on the name: DECLINING MEDICAL REVENUES In 4Q19, gross revenue from medical cannabis was $10,855 versus $11,770 last year and $10,649 in 3Q19, representing a year-over-year decline of 7.7% and only 1.9% increase from 3Q19. Despite growth in gram equivalents sold, the company can’t maintain medical cannabis pricing as they are selling more of the lower quality Aphria brand. Short the bounce, KM |
