Aphria (APHA) finally delivered strong earnings that lifted its stock more than 40% on a single day last week. After suffering greatly from the short attack last year, investors are seeing glimpses of hope that the company, led by its new leadership, is nearing a turnaround. While we are encouraged by its latest earnings and the positive market reaction, we would caution that the stock was experiencing a relief rally rather than a fundamental outperformance. The stock's valuation has jumped significantly to trade in-line with its peers. We view this as a good