Aphria Inc. (APHA.TO) Heffx Top Pick
Aphria Inc. is our top pick for June. It’s a worldwide consumer packaged goods and wellness company focused on cannabis.
The company has posted stellar earnings up to now in 2020, and i believe it will still do so within the near future. The Canadian cannabis industry is due for a correction after the fallout of financing issues and COVID-19.
Last earnings, Aphria announced a 54% growth of cannabis sales quarter-over-quarter while other similar corporations are posting flat or decreased growth. i would also consider the current share price of Aphria to be undervalued based on future cashflows.
Aphria Inc. is a leading global cannabis company driven by an unrelenting commitment to our people, the planet, product quality and innovation. Headquartered in Leamington, Ontario – the greenhouse capital of Canada – Aphria Inc. has been setting the standard for the low-cost production of high-quality cannabis at scale, grown in the most natural conditions possible.
Focusing on untapped opportunities and backed by the latest technologies, Aphria Inc. is committed to bringing breakthrough innovation to the global cannabis market.
The Company’s portfolio of brands is grounded in expertly-researched consumer insights designed to meet the needs of every consumer segment. Rooted in our founders’ multi-generational expertise in commercial agriculture, Aphria Inc. drives sustainable long-term shareholder value through a diversified approach to innovation, strategic partnerships and global expansion.
Shayne Heffernan Trade Idea
“We predict the future price of Aphria will come in around $8.20 which will give the stock a price increase of +38.33%.
Price Performance
Relative Valuation
Technical Indicators
Overall, the bias in prices is: Upwards.
Note: this chart shows extraordinary price action to the upside.
By the way, prices are vulnerable to a correction towards 5.24.
The projected upper bound is: 6.53.
The projected lower bound is: 5.27.
The projected closing price is: 5.90.
Candlesticks
A black body occurred (because prices closed lower than they opened).
During the past 10 bars, there have been 4 white candles and 5 black candles for a net of 1 black candles. During the past 50 bars, there have been 19 white candles and 30 black candles for a net of 11 black candles.
Three black candles occurred in the last three days. Although these candles were not big enough to create three black crows, the steady downward pattern is bearish.
Momentum Indicators
Momentum is a general term used to describe the speed at which prices move over a given time period. Generally, changes in momentum tend to lead to changes in prices. This expert shows the current values of four popular momentum indicators.
Stochastic Oscillator
One method of interpreting the Stochastic Oscillator is looking for overbought areas (above 80) and oversold areas (below 20). The Stochastic Oscillator is 56.1224. This is not an overbought or oversold reading. The last signal was a sell 6 period(s) ago.
Relative Strength Index (RSI)
The RSI shows overbought (above 70) and oversold (below 30) areas. The current value of the RSI is 61.88. This is not a topping or bottoming area. A buy or sell signal is generated when the RSI moves out of an overbought/oversold area. The last signal was a buy 54 period(s) ago.
Commodity Channel Index (CCI)
The CCI shows overbought (above 100) and oversold (below -100) areas. The current value of the CCI is 52. This is not a topping or bottoming area. The last signal was a sell 5 period(s) ago.
MACD
The Moving Average Convergence/Divergence indicator (MACD) gives signals when it crosses its 9 period signal line. The last signal was a buy 11 period(s) ago.
Rex Takasugi – TD Profile
APHRIA INC closed down -0.110 at 5.870. Volume was 42% below average (neutral) and Bollinger Bands were 31% wider than normal.
Open High Low Close Volume 6.050 6.060 5.830 5.870 2,085,495
Technical Outlook Short Term: Overbought Intermediate Term: Bullish Long Term: Bearish
Moving Averages: 10-period 50-period 200-period Close: 5.90 4.98 6.06 Volatility: 47 84 93 Volume: 3,611,673 3,839,213 3,145,469
Short-term traders should pay closer attention to buy/sell arrows while intermediate/long-term traders should place greater emphasis on the Bullish or Bearish trend reflected in the lower ribbon.
Summary
APHRIA INC is currently 3.1% below its 200-period moving average and is in an upward trend. Volatility is relatively normal as compared to the average volatility over the last 10 periods.
Our volume indicators reflect volume flowing into and out of APHA.TO at a relatively equal pace (neutral). Our trend forecasting oscillators are currently bullish on APHA.TO and have had this outlook for the last 9 periods.
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