Concerning allegations contributed to the marijuana stock's fall. But could Aphria now be a bargain?

While Aphria's stock price is down significantly in the past year, it has fared far better than its competitors.

Aphria stock is in position to form a double-bottom pattern relative to its December 2018 low. I’ve highlighted that monthly candlestick on the provided APHA stock price chart.

Summary Aphria get a low-ball offer from a much smaller company, Green Growth. Valuations from the potential revenue from the Canadian-based Aphria value the company at double the offer.

Still, Aphria investors who bought one year ago and held on have generated a big return on their investment. In fact, $1,000 in Aphria stock bought on April 13, 2020, would be worth about $4,336 ...

Does this mean Aphria is a bad buy? Although Aphria's stock price is down since the merger announcement, that doesn't mean the company's shares will remain on a negative trajectory over the long term.

What happenedShares of Aphria (NASDAQ: APHA) surged on Tuesday, following bullish analyst commentary. As of 3 p.m. EST, Aphria's stock price was up more than 25%.

Aphria's chief financial officer hinted at a future dividend for shareholders, an unexpected statement amid market turmoil for Canadian weed stocks.

Aphria expects to get approval by April to open 40 more stores in Ontario. That will help, but Aphria and other legal pot growers face stiff price competition from illegal sales of marijuana.

For investors considering buying Aphria stock now, there's another perspective. The stock issued to fund the LATAM Holdings transaction diluted existing Aphria shares by between 6% and 7%.