Thread: Financial News
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Old January 13, 2021, 09:25 AM
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zman zman is offline
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Join Date: January 20, 2005
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Wish you had bought couple of weeks ago when I alerted. These stocks have gained 50% since then. Good move nonetheless especially for a swing trade. TLRY used to be one of the worst cannabis stocks. It got attention only because Peter Thiel invested in it. Their cost of production is almost 3 times more than Aphria. As a standalone company they'd never become profitable. However the two companies decided to merge recently which was a shocker to me. I don't know why Aphria agreed to it, only thing that makes sense is to increase their global footprint. Anyway long story short TLRY stands to gain way more from this merger than Aphria. The price of Aphria and TLRY stocks are now directly correlated. Just keep one thing in mind for your swing trade. Aphria reports earning tomorrow. Usually there's a huge pump going into earnings and then a dump right afterwards. I'll unload half my holdings going into earnings. Won't be too surprised if there isn't the usual dump this time since fundamentals have changed. There will be lots of ups and downs in the short term but in the long term they should do well unless there's an overall market correction.
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