[locutus49]

I am a very conservative dividend investor, but I bought some stocks like Apple and Google many years ago. Thanks for your assessment. I checked out Aphria on Seeking Alpha, and bought 500 shares to get my feet wet. My guess is that down the road Phillip Morris or Altria will buy one of the better marijuana companies. I own both of those stocks.

Originally Posted by mcorliss

Today, Aphria is down this morning because they just announced a $100MM bought deal (capital raise) to be used to ramp up operations prior to the launch of Recreational on July 1st, 2018. Whenever these companies do a large capital raise, the stocks decline the next day, but then rally back the following week. Nothing for concern, in fact, it is a great thing, because they are thought of highly enough by institutional investors, that they want to buy into the company, but not via the open market, so you don’t get upwards buying pressure.

The normal trading down pattern on capital raise days is just the effect of ownership dilution for more shares being added to the number of outstanding. At the end of the day, you want these companies to raise capital as fast as possible so they can expand their capacity to produce and sell more product sooner with the recreational launch.

I always use these down days to add to my existing position. My best friend just picked up another 10,000 shares, and I may grab another 20,000 myself. Good luck, Guys!