|Bid||20.16 x 0|
|Ask||20.19 x 0|
|Day's Range||19.15 - 20.27|
|52 Week Range||7.33 - 32.95|
|Beta (3Y Monthly)||4.95|
|PE Ratio (TTM)||36.35|
|Earnings Date||Aug 8, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||15.07|
Cannabis stocks were mostly lower on Tuesday, led by Curaleaf Holdings after the U.S. Food and Drug Administration sent a warning letter to the company for claiming CBD-based products could treat a range of serious diseases, including Alzheimer’s disease.
Based upon its performance and numbers, Cronos (CRON) is one of the most overvalued cannabis stocks in the sector. It gains a lot of positive outlook because of Altria's (MO) investment in the company, and the potential benefits in that, but Cronos has yet to prove it can generate the type of products that play into the strengths of Altria.But the performance of Cronos leaves a lot to be desired when considering it only produced 181 kilograms of finished dried cannabis and 200 kilograms of oil in the reporting period, totaling only $2 million in value.The market is increasingly looking for Cronos to benefit from the growing CBD market, which if it can deliver desirable products, could possibly live up to past expectations.It has recently experienced a number of downgrades on its weak performance.The Altria factorFor the few cannabis companies that have received investments from large companies, the market has rewarded them with huge valuations; disproportionately in my view. After all, look what has happened to Canopy Growth lately even with the billions Constellation Brands has poured into it. Its disappointing results has taken down the bulk of the cannabis industry with it, because most in the market (not me) considered it the bellwhether of the industry. The point is capital alone can't buy results.As for Altria, its investment in Cronos prematurely rewarded it legitimacy in the eyes of the market. Altria has the ability to leverage products coming from Cronos, but those products have to be attractive and meet market demand.It's no secret Altria has about 230,000 physical outlets in the U.S. it can distribute products through, and if Cronos products land in some of its premium shelf space, it would be a potentially large growth catalyst for the company.Another major benefit from the partnership is Altria's marketing expertise which will allow it to further leverage products at a level Cronos couldn't come close to matching on its own.There is also the fact the types of supply chain issues in Canada have already been able to be solved by Altria with its own products. That should reduce most of the friction, which will probably result in smooth and relatively unhindered delivery.The $2.4 billion investment in Cronos doesn't hurt either, although as mentioned, the company hasn't been able to turn things around with yet.With all these positives, there is a huge cog in the wheel that could undermine the potential Cronos has with Altria.CBD considered the future of CronosThe CBD market is considered to be the major catalyst that will drive growth for Cronos going forward. The Brightfield Group projects CBD sales to soar to $22 billion by 2022. While that may be a little too optimistic, even if its fairly close to those numbers, and if Cronos wins significant market share, it will be a major growth engine for the company.The huge challenge for Cronos at this time is its lack of ability to build out branded products that would benefit from the leverage and expertise Altria offers it.For example, on the recreational pot side of the business it has developed two brands: "COVE" and "Spinach," neither of which have impressed the market. Not only does that suggest it's going to struggle to generate adult-usage revenue, but could struggle to build sustainable brands in the CBD market as well.It doesn't matter how many physical locations Altria has, or marketing expertise, if it doesn't have quality products to work with. That's the enormous challenge ahead for Cronos, which is expected to make its big push into CBD in 2020.ConclusionInvestors need to look beyond the Altria connection Cronos has with the obvious potential benefits, and focus directly on the types of products the company develops.Having accessibility to a huge distribution network that includes marketing expertise, doesn't guarantee Cronos will have the types of products available that will meet market demand.For that reason, I see the market making assumptions about Cronos that is has yet to prove.If it in fact does manage to identify market demand and fill it, than yet, the potential for future growth is enormous. If not, Altria and its money won't be able to turn it into a profitable player in the industry.The problem for Cronos is that without Altria it's not much more than a tiny company that would struggle to find long-term growth in any meaningful way. That points to weakness it must rapidly overcome in order to leverage the massive distribution network and supply chain Altria has ready for it to use.See CRON's price targets and analyst ratings on TipRanks
The cannabis industry is gaining increasing mainstream traction as more and more celebrities team up with firms to offer their support.
On Thursday, Bank of America downgraded Aurora Cannabis stock (ACB) to “neutral” from its previous “buy” rating. Here's why.
Canadian cannabis companies have leapt onto U.S. stock markets, dazzling investors. Here's a rundown of industry facts and how to invest in marijuana stocks.
Cramer said he still sees Canopy Growth Corp. as the leader in the sector and also still recommended Cronos Group . In this daily bar chart of CRON, below, I don't want to focus on the rally into the February high but rather the decline from that high. After the March peak, CRON turned lower and broke below the rising 50-day average line which quickly turned bearish.
Cronos Group (CRON) has been one of the best performing large-cap stocks in the cannabis sector despite having a very small production capacity next to competitors of similar size. Cronos is expected to produce between 110,000 and 120,000 kg per year by 2020. Cronos has done a fantastic job with strategic partnerships that are sometimes more valuable than just production capacity alone, and this brings us to the age-old saying: quality over quantity.Cronos received a massive 2.4 billion-dollar (CAD) investment from the Altria late last year which sent the stock on a massive run from $13 to over $30 per share. This was big tobacco’s first large scale investment into the cannabis sector and many still believe that Cronos holds a massive advantage over their competitors due to the simple fact that they have Altria and its highly reputable brands backing up the company now.A lot of us that follow or invest in Cronos already know this, but it's always great to revisit past accomplishments to gauge if the company is on track and setting themselves up for the future. We all know that the market sometimes cares more about the future so what is Cronos up to right now that could have a positive impact on their share price and make them one stock worth buying today?A Strategic New Hire Could Open Huge DoorsOn Tuesday, July 9th Cronos announced it has hired Dr. Todd Abraham as Chief Innovation Officer. Dr. Abraham has worked for Nabisco, Pillsbury and more notably Mondelez in the past. Mondelez is a massive corporation that has a long list of highly successful consumer brands under their belt from Cadbury to Oreo’s. Dr. Abraham worked at Mondelez for 17 years prior to joining the Cronos and surely has deep ties in the company. This not only caused a jump in shares of Cronos but high speculation that Cronos plans to enter the consumer-packaged goods market in the future. This market is virtually untapped and could prove to be highly profitable with the right partnerships in place. Abraham will be working on research and development when it comes to consumer-packaged goods for Cronos.Cronos Wants To Be DifferentThis is a perfect example of how Cronos is using strategic hires and potential strategic partnerships to set themselves apart from their competition. Investors put too much emphasis on production capacity and not enough on valuable connections. This is where Cronos excels when it comes to its competition. They are also preparing to enter the CBD market in the United States as the market is set to explode and become a multi-billion dollar industry in just a few years. Their strategic partnership with Altria in America will more than likely give Cronos an advantage when sourcing hemp for CBD extraction. With this partnership in place, Cronos can use Altria's distribution network and presence in over 250,000 stores to move their product when they see fit. Moreover, Cronos has a global footprint that spans across five continents with plans to build out its proposed global network via strategic partnerships and joint ventures.Bottom lineWhen it comes to picking a cannabis company to invest in, there are so many options nowadays and we have seen many companies promise a lot and not deliver when the time comes. Like any growth industry, there are visionaries in the form of CEO’s promising that their companies are going to be industry leaders and make many millionaires rich. When we look at Cronos, we like the company for a few solid reasons. First off, Cronos is not showing as much emphasis on the Canadian recreational market as other companies, they are building a global network that we feel will be more lucrative in the future and will reward patient investors. Second, Cronos has already attracted one of the industry leaders in the tobacco business in the form of their massive 2.4 billion dollar investment, which is an accomplishment in itself, and paves the way for an immense distribution network that other competitors do not have when looking at the US market. Third, we like the fact that Cronos is making strategic hires and putting emphasis on markets like the consumer-packaged goods market, which will be a multi-billion-dollar opportunity if the US legalizes cannabis federally. These are some of the main reasons we think Cronos is worth looking at if you can stop comparing production capacity and look outside the box.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click hereDisclosure: No position. Read more on CRON: * Don’t Buy The Hype: Cronos (CRON) Stock Is Still Risky * Bank of America Flips Over Cronos (CRON) Stock More recent articles from Smarter Analyst: * Last Minute Thought: Buy or Sell SNAP Stock Before Q2’19 Earnings? * Buy Facebook (FB) Stock Into Earnings, Says Wedbush * All Eyes on Tesla (TSLA) Stock Ahead of Earnings; Wedbush Remains Neutral * Marijuana Stock Cronos (CRON) Remains a 'Show Me' Story at This Point
Cronos Group (NASDAQ: CRON) (TSX:CRON) announced Thursday it entered into an agreement to acquire GMP compliant fermentation and manufacturing facility from Apotex Fermentation. The acquisition is expected to be completed during the third quarter, whereas Apotex Fermentation will continue to be in charge of a wind-down of the facility through Fall. Inside the facility are completely equipped laboratories, microbial fermentation production areas, and processing plants.
Cronos Group Inc. (CRON.TO) (CRON.TO) (“Cronos Group” or the “Company”) today announced that it has entered into an agreement to acquire an 84,000 square foot GMP compliant fermentation and manufacturing facility in Winnipeg, Canada from Apotex Fermentation Inc. (“AFI”). As previously announced, Cronos Group has entered into a partnership with Ginkgo Bioworks, Inc. (“Ginkgo”) to produce cultured cannabinoids.
Cronos shares were rising Thursday after the cannabis company announced that it has entered into an agreement to purchase an 84,000-square-foot fermentation and manufacturing facility in Winnipeg, Canada. The facility will operate as "Cronos Fermentation" and include fully equipped laboratories covering microbiology, organic and analytical chemistry, quality control and method development. "This acquisition will provide the fermentation and manufacturing capabilities we need to capitalize on the work underway with Ginkgo once the milestones under that partnership are achieved," said Mike Gorenstein, CEO of Cronos Group.
For the United States, recreational cannabis and medicinal cannabis have penetrated just 8% and 21% of their estimated markets, leading to our expectation for 25% and 15% compound annual growth rates through 2030, respectively. For Canada, despite recent recreational legalization, cannabis has penetrated just 12% of our estimated market, setting the stage for a 20% CAGR through 2030. For the international market (which excludes Canada and the United States), we forecast market potential of nearly $43 billion and a 23% CAGR through 2030 as more and more countries recognize the benefits of medical cannabis.
An emerging data company has a unique solution to identify, manage and distribute cannabis products, but the potential of its technology could stretch beyond the booming marijuana markets
Cronos Group (NASDAQ: CRON ) on Tuesday announced the appointment of Dr. Todd Abraham as the company's Chief Innovation Officer. Abraham "will be responsible for advancing Cronos Group’s research ...
Cronos Group Inc. (CRON.TO) (CRON.TO) (“Cronos Group” or the “Company”) today announced that Dr. Todd Abraham has been appointed as the Company’s Chief Innovation Officer. In this role, Dr. Abraham will be responsible for advancing Cronos Group’s research and development initiatives in cannabinoids with a focus on identifying new disruptive technologies and adopting best practices and innovations from adjacent consumer goods industries.
Cronos Group Inc. (CRON.TO) (CRON.TO) (“Cronos Group” or the “Company”), will announce its financial results for the second quarter ended June 30, 2019, and hold its Second Quarter 2019 Earnings Conference Call on Thursday, August 8, 2019 at 8:30 a.m. EDT. A live audio webcast of the earnings call will be available on the Company’s website at https://ir.thecronosgroup.com/events-presentations. The call will be archived on the Company’s website for replay.