 What's going on everybody Aaron here from Departures Capital. We're here with rich TV live. How are you today rich? I'm doing good. How are you? I'm doing great looking forward to this show. It's been over a week for us You know usually we collaborate every week, so I'm looking forward to Talking to you again and getting your opinion on some crazy news that we've had obviously Everybody's been hearing about it. The news came out about a free of the stocks down like crazy You've heard about it You haven't actually read it yet, so I'm going to read it and then we're going to get your opinion on it Good. Yep. Alrighty, so a free a shell game with a cannabis side Sorry a shell game with a cannabis business on the side So this is a summary and then we're going to get into the nitty-gritty details So a free as recent 280 million dollar Latin American Acquisitions raise major red flags are extensive on the ground research shows that the transactions appear to be largely worthless Example the official registered office of a free as a hundred and forty five million dollars to make an acquisition is an abandoned building That was sold off by the bank earlier this year Example a free as 50 million dollar Argentine acquisition publicly boasted sales of us 11 million dollars in 2017 Our worker at the company however affirmed that 2017 revenue was only 430k us documents show that a free as insiders are were likely undisclosed beneficiaries of the deals We estimate a free a Has diverted upwards of 700 million via such transactions or 50% of a free as total net assets I fear consistently generates negative cash and its cannabis seems to be of low quality interviews with sources described facilities Infested with bugs sticking with mold and having failed audit inspections So I'll go into the rest this article. It's not too long. I mean Well, actually it is pretty long It's a it's a 30 page article but we'll just touch on the on the background and then a few points and then we'll get your opinion on Basically the summary and what they're saying so anytime an exciting new industry draws widespread attention It also draws retail capital which in turn draw unscripted list actors This is not a this is not a story about the cannabis industry and its commercial potential nor is it a story about valuations and competitive marketplace dynamics This is simply put about one of the larger companies in the industry that appears to have diverted a tremendous amount of money towards the Private interest of its insiders at the direct expense of public shareholders so like I said this article is 30 pages long, so we're gonna be here all day reading this article and It's available online at seeking alpha. It's a 30 page long article. It's a 30 page long article Yeah, so I can go through just each page. Okay, so back. I'm not gonna do the whole thing But no, no, no, no, I just I just want to get the gist of it. So I think I got an idea of what it is. Yeah Wow Those are some big accusations. Yeah So They're essentially saying that the insiders took 700 million That's pretty big accusation and Unfortunately for after this is not the first time there's been people that have written articles about their insiders and their dealings so I Think that this is some big news and I think it's definitely going to affect the stock. Obviously it has affected the stock Now this reminds me of last year last year. I don't know if you remember this but last year an article came out that said organogram had pesticides in it. Yep, I remember that and Similar issues with its crops was invested in it organogram at the time. Actually. Yep, and organogram Plummeted similar to this and I remember saying at the time that this was a buying opportunity And organogram went all the way down to a dollar. I know they've traded much higher than that A year later. Yeah, this is kind of like a similar thing it's just um a war in the markets and you got Shorters and you got people that are long-term investors and you got day traders and you got Institutions and you got everybody thrown up in the hedge funds. Everybody's thrown up in the mix here. Yeah, and Certain people want to take this stock down for their own personal gain and they were able to do that They were able to do that with this one article, which is just shows the power of the media totally crazy Yeah, that's a pretty bad article Definitely the fact that it's 30 pages long too So it's very detailed now I heard that aphria has already responded. Is that correct? Do you know anything about this? I got a message on facebook that's saying that The direct okay, so I can read it investor relations response to allegations allegations have been made by the short seller Quintessential capital in the report that they published this morning Are false and defamatory the company is preparing a comprehensive response to provide shareholders with Facts and is also pursuing all available legal options against quintessential capital So that was from joel pierce investor relations administrator Now i'm not a hundred percent sure if the company's responded yet, but the stock has bounced at one point It was down 27 percent now. We're down um Now we're down 24 percent. Sorry. I my friend just arrived One second. I just got to do one thing. Can we pause this? Just go get the door. It's okay So yeah guys, I don't think this is really I don't think this is the type of news that We are looking for In the cannabis sector Obviously aphria is one of the big three in canada When you look at canopy growth when you look at aurora cannabis and you look at aphria aphria has to be up there in the big degree And based on this news today, they've obviously come back down a lot so This has hurt the entire sector They responded there was a bounce back and now everything's coming back down again So the one thing that I find interesting about that article is if you actually Listen to what he said about the article. It was a short seller Sorry rich. I'm back a short seller So remember Aaron said there was a short seller who put out this article and what happened to the stock the stock went down Yeah, when you get a short seller and they start putting out an article and the stock goes down You have to understand that that's to their benefit because that's how they make money They make money by shorting aphria So I'm not surprised that it's going down after they put out this article So I mean I mean liquid happens when citron research puts out an article, right? That's a pretty successful short 24 percent in one day 27 percent in one day Yeah, they've done a good job of executing their Executing their plan I mean until it was high And they put out the bad news and it's come down 30 percent in a day. That's pretty successful for them No, for sure. And and the 700 million would indicate it could 50 drop, right? Like if if the money was actually if if what they said was true, right? Yeah, so there's A lot of money being made in this industry these types of things that he that quintessential research is Trying to say that aphria is doing Are to be quite honest with you. They're they're problems that all of these companies are having All of these companies are going to have insiders making money. That's why they go public So there's no advantage to them to to not make money in this industry That's why they're in the industry so people have to recognize that people do these things to make money These transactions are happening every day stocks Going up and down and these public companies having issues with pesticides And their crops it's happening with all of these companies Every day if you're in the cannabis sector and you're a grower you're going to have issues with your growing Yeah, let's be honest. So what they're saying isn't anything new Isn't anything that anybody doesn't already know So I don't feel like they're giving us any news. That's like all breaking news to be quite honest with you I don't think there's really anything new here It's just a short seller trying to short a stock and they actually have been able to successfully short a stock Yeah That's what's happening here. I mean they've executed their plan flawlessly Now do you think this will be a continued slide for aphria? For a while or do you think we're gonna find some support soon? Because I mean aphria was already if you like there was an article comparing Aurora to canopy to aphria to all those other ones saying how that you know aphria had the best Value in terms of production capacity and all that kind of stuff compared to aurora compared to canopy All that it was already pretty cheap I think it's a buying opportunity. I think that this is a great company. I think this company will prove people wrong I think that these insider type dealings are very common I think that shorter is putting out news to take stocks down is common And I think this is just the markets. We're at war They they show themselves every day Longers are gonna you know and promoters are gonna get paid to promote stocks and to help companies create visibility And shorters are gonna put out negative news to take stocks down so they can short stocks. This is the market I mean we've seen it before we've seen it with cron we've seen it with namaste We've seen it with tilray And we're gonna continue to see it because that's the industry that we're in Yeah, that's the industry and these types of things are just gonna happen It's gonna keep happening and that's the industry we're in so people have to get used to it I've been around the game for a long time. I've seen crazy things that happen. I've seen big stocks crash I've seen small stocks explode. I've seen it all right, so I've seen great companies like blue chips like nortel networks go to zero I've seen You know small companies that people thought were garbage go to 100, you know like things like that just happened so You know it's it's like we it's like we blinked and igc went to 14 and then down to a dollar Correct and and you know what now they're climbing back up again. They're actually up today So I know the markets amd is another company We should really talk about a lot because amd is been climbing and they've been like a huge success story And they were down recently and now they're climbing up and they're having a huge day today So yeah, true and true There's so many companies and there's so many ways to make money and there's so many industries And you know, we've talked about it before and I don't really think there is anything different happening in the markets right now Then we've always seen it's a war Continue to be a war there's the the The cannabis sector is red based on this news probably as number one reason But the rest of the global markets that dow jones is up dramatically Yeah, we had a we had a green balance actually like a lot of not what we're back in the green again So like a rose back in the green again So I was looking at the charts today and I was you know, I said to myself Wow a fria is down. It's like not even 10 o'clock. They're down 27 percent. I was like, I'm pretty sure We might see some kind of bounce because you know, like Recently it's been, you know green morning and then boom And then when it's like red morning, you know, like People are gonna buy the dip if it's that early that much selling that that fast within the first hour just my opinion Yeah, hey listen I a lot of people within my community bought the dip and made money already and then they got out Like acb was down 5 percent at one point and it swung all the way up It was it was up over 3.5 percent like within a couple hours. So that's almost a 10 percent move Yeah, that's a big swing I mean these markets are going to continue to be volatile But I think in turn as long as these companies keep generating large revenue We're gonna see them grow people are gonna attack them people are gonna trash them people are going to Say they're this and that but at the end of the day as long as their revenue grows What are people going to be able to say? Other companies are great companies. So I think there's a long way to go Before they start to retract In my opinion We just also discussed a funny article be releasing it in a in a later video But I'll get your opinion on it too. An article was recently put out Is crown a better buy than a rower cannabis by the motley fool? And um, it's funny how they were comparing numbers and stuff. They're preparing Comparing production capacity saying that cron's production capacity is gonna increase by x percent But at the end of the day, they're producing 500 kilograms a month and acb is producing like 7000 per month or however much it was but it was just funny and now cron is up what 10 or 15 percent today Yeah, I mean that's their job right like when you're a promoter, that's your job, right? So exactly those guys those guys obviously Cron I'm sure is hiring them Right. Yeah This is the war right like it's the promoters versus the shorters press releases versus negative news fear tactics Versus real fundamentals and real revenue and real financials. Yeah, and over time The companies that have real revenue are gonna grow. I don't see how anybody can compare cronos group to a rower Cannabis that's laughable. I know that's why we want to talk about it because it's such a Kind of ridiculous, right? so clearly So it's not even They're not even in the same Yeah, I know exactly but that just goes to show how like You can have the one side where an article comes out negative about a freea and it goes down so much And then an article comes out positive about a company that's not even comparable And crown is outperforming a rower by Enfold today and it's just like it goes both ways, right? Well, I think cronos group also got us destroyed, right? So they got destroyed. So they're having their come up right now. So, yeah um, you know, they're fighting different elements. They've got issues with Shorters infamous short sellers. Yeah You know, everybody has their issues right now in this marketplace and the companies that don't that are clean Uh, the longer they stay in this marketplace eventually will have issues because short sellers will try to take meat off the bone It's just the way they operate. It's the game Yeah, for sure. I mean people want to like let's face it people want to make money on the ups and the downs, right? Yeah, people do make money on the downs We want to make money on the ups and the downs too. The key for us is we want to find the bottoms We're bottom hunters. Yeah. Um, I still think that things can go down more guys. So be very careful We're going into christmas people are gonna be selling they're gonna be looking for money for christmas end of the month in december I know it's the beginning of december, but man people are spending money right now for christmas. So Just be careful. I think right now you need to be careful That is true. I got one great question for you though to uh end off this video Can you give me if you want? I know you just put out a video on 10 great cannabis stocks for december, right? Yeah, so check out rich's video 10 great picks for december, but let's give your top three your top three small-cap cannabis picks for december Put it on the spot. Um, sorry Okay, so that 10 that top 10 was actually the top 10 revenue generating cannabis stocks In america reporting in america. Okay, there we go top 10 really just ranked based on revenue Okay, so that was not the three that I think are going to go up the most in december If you had to pick three, yeah, if you had to pick three that I think That i'm looking at right now in december. Yeah I would definitely have to say right now based on this drop. I definitely have to put aphria there I think that along with this drop right now. I'm really watching them and I think this could be a buying opportunity But I want to be watching them. They're definitely wanting to watch for me And I think the aurora cannabis at these levels for me. I think is a buy and I I think it could go lower. I've been saying it could go low as five dollars in canada So i'm in the 350 area in america I think it could go that low because it's been that low that would be their low low And that would definitely be a screaming buy for me, but I think even at these levels I think aurora is a buy long term. So I think we've got heavy support at seven I really like them at these levels and To pick a small company that i'm watching that's doing really well chemistry chemistry hm They're up nine percent today. I've been talking about them They're a canadian company that's doing business in america strategically focused in america and I really like that play Um, they've been going up quietly strategically Other than your boy rich no one's talked about them They've been going up since my videos and I think that they've been doing a sneak attack So you need to watch them and another one for you guys to watch is bvo zanabbas Um Yeah, I think they're going to just shock the world nobody knows them But they are one of the biggest players in the world You might as well give me one more as a small cap then we can have three small cap stocks What under a penny one is that what you're saying like uh, just small market cap. Let's say under 500 million You know, I really like fire man. I think fire But you know what they're doing a reverse so I got to take them out of there. Sorry I'm removing them. I don't like companies that do reverse splits. Yeah Yeah, man, there's so many good companies. Uh, I think at these levels I really like oxley I think oxley is one that right now 83 cents today I think at these prices you have to look at oxley and think To get 10 000 shares of this company and just hold it for the future They are going to eventually explode. It's just a matter of time. So Yeah, I like there's so many great companies right now. I'm looking at so many companies There's so many options. There's great companies in america too. I love acreage. I love true leave. I love c-web So many great companies, but there's six I'm watching all of them and yeah, I just want to find the best companies at the bottom For sure for sure. No, there's lots of bargains right now Might be a bit of a waiting game, but there's definitely a lot on sale right now I love kush bottles in america. Love them the cbd space. I mean and bev exploding today Yeah, and for the cbd space obviously c-web being the number one cbd company in the world like You know, everyone needs to watch them and true leave being a very player in the cbd space So so many good companies to watch we're just I feel like we're blessed to be in this industry to be quite honestly So exciting so many big things are happening every single day And it's just exciting to be reporting on all these great companies every single day because even when aphria has bad news We all know it's a great company. So it's literally just a buying opportunity really Yeah, I mean, I thought it was a steal at 10 now. We're at wait. What are we at now for aphria? We're at 799 So yeah, so it's uh, you know, it's like I said, it may just be creating a buying opportunity We're gonna watch it and that's the beauty of rich tv live and departures capital If you want to know what's going on watch rich tv live now watch departures capital Remember, we are not licensed advisors. Do your due diligence. Do your research before you invest in anything that we talk about here Rich tv live. Okay, if you're not winning you're not watching. This is your boy rich here with erin from departures capital Yo, man, what are you doing for christmas, bro? I am. Oh, yes. So for christmas I'll be spending with my family and then shortly after that I'll be headed to st john's In antigram barbuda for new years and I'll be shooting the show from there What? Oh my goodness. I'm so jealous. That's gonna be sick Yeah, it'll be crazy. So I'll be bringing you some better views than just the walls of my condo Man, I can't wait man. I hope you have a great trip man. And then what are you doing shortly after I get back Yeah, december uh, janet december january 12th to the 29th I will be in the dominican republic and I'll reporting. I will be reporting to you guys from the beach I don't know how much stocks. I'll be talking about You guys I'll be doing stock picks. I might depends on how big the news is But um, yeah, I might be doing some videos just you know talking about Living the good life on the beach because that's what I'd like to be doing It's getting cold here in Vancouver, man like below zero today like cold. I want to yeah Wow All right guys. Thank you for watching. It's your boy rich erin departures capital rich db live We out Awesome, that was great. I think that's