Earnings from Cronos and CBS were scrutinized and a look at the price action in Disney were a few of the topics discussed on today's PreMarket Prep Show.
Marijuana Sector Looking For A Catalyst
After a dismal performance in 2019, the marijuana sector is looking for a catalyst to spark a year-end rally. Cronos Group (NASDAQ: CRON) was the first of three issues in the sector to report this week.
Before the open, Cronos announced third-quarter EPS of 40 cents, which was 23 cents better than in the second quarter. Sales rose to $9.65 million, which was also an increase from the second quarter. Although the company does not make a lot of money, it has improved on its revenues every quarter since going public in 2016.
When it was being covered on the broadcast, it was still in its price discovery trading above and below Monday's close ($8.08). As a result, the price action was not revealing on how the issue may trade off the open. The author of this article identified that its last five highs were between $8.43 and $8.67, making the $8.50 level a notable area of resistance.
After a lower open, it bottomed at $7.60 and spiked to $8.50 on the nose, but has since backed off.
The co-hosts of the show discussed whether or not even great reports from issues in the sector will muster a rally, taking into account the overhead supply in the issues and the looming threat of year-end tax selling in the sector.
CBS Falters After Mixed Q3 Report
CBS Corporation (NYSE: CBS) announced a mixed report, coming up shy on sales by $65 million.
After a failed rally in pre-market trading off the EPS beat, the issue was in the red when being discussed. The pair of lows at the $37.20 area from last week were identified as a possible area of support. However, the issue found buyers just ahead of that key level at $37.29 and rebounded back into the mid-$38 handle.
Disney+ A Plus For Investors
The price action in Walt Disney Co. (NYSE: DIS) has not been great. Since peaking on Friday at $140.25, the issue drifted lower finding a bottom in the same area ($136 handle) over the last three sessions (including today) and staged a rebound.
Co-host Dennis Dick played the issue from the long-side in Monday's after-hours trading with the catalyst being the rollout of the Disney+ service. He was able to take a profit in pre-market trading, but may lament that exit after the issue rallied to $139.34.
Whether or not the major sellers in the $140 are still congregating at the $140 area remains to be seen.
Kenny Glick Joins The Show
Near the end of the broadcast, Kenny Glick of the Hitthebid.com joined. Kenny analyzed the price action in a few different issues in his usual comedic fashion.
On Wednesday's show, Andrew Chanin, Co-founder and CEO ProcureAM will be our guest at 8:35 a.m. ET.
See more from Benzinga
- PreMarket Prep Recap: Disney, Stamps, And Booking's Wild Ride
- PreMarket Prep: Beyond A Random Walk For Earnings Stocks
- PreMarket Prep Recap: Netflix's Early Gains, And What Is Going On With Cronos?
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