|Bid||10.32 x 1800|
|Ask||10.32 x 3000|
|Day's Range||10.09 - 10.46|
|52 Week Range||6.50 - 25.10|
|Beta (3Y Monthly)||3.13|
|PE Ratio (TTM)||N/A|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||N/A|
The formerly ousted Canopy Growth Co-Founder Bruce Linton joins Yahoo Finance’s Zack Guzman and Heidi Chung to discuss his new positions within the cannabis industry and his outlook for the cannabis market. New York Post Wall Street Reporter Kevin Dugan also joins YFi PM to discuss.
Cowen’s Vivien Azer came out with her top picks for new coverage of U.S. cannabis companies, and she is starting Green Thumb Industries at an outperform rating. Yahoo Finance's Zack Guzman and Heidi Chung are joined by Vera Gibbons, NonPoliticalNews.com Founder, to discuss.
Bad news on the trade war front appears to have led to a fall in the broader US equity markets today. Cannabis ETFs were also trading in the red.
The cannabis group received more attention from Wall Street when a top firm initiated coverage on eight cannabis stocks. However, the analyst coverage is mixed, suggesting stock selection is critical for ...
Today, the US cannabis markets were trading a little higher than we have seen in the recent past. The Federal Reserve cut interest rates by 25 points.
Marijuana companies are betting that South America will supply the world with outdoor-grown cannabis at a fraction of North America's costs.
Cronos' line of CBD products earned a live endorsement from Cramer, who is a spokesperson for the American Migraine Foundation. "It is the only thing that works," Cramer said. Tobacco company Altria Group Inc (NYSE: MO) bought a 45% ownership stake in Cronos, and the relationship has been "extremely helpful," Gorenstein said.
In a distressing reversal of fortune, cannabis-related companies like Tilray (NASDAQ:TLRY) have suffered sharply. No longer content on listening to a strong narrative, investors wanted hard numbers. Unfortunately, the weed alpha dogs like Cronos Group (NASDAQ:CRON), Canopy Growth (NYSE:CGC) and Aurora Cannabis (NYSE:ACB) have all produced disappointing results. For Tilray stock, it's down more than 56%.Source: Jarretera / Shutterstock.com Of course, several analysts have their take on the issue, and I'm not going to speak for any of them. I will say, though, that in my view, marijuana investments like TLRY stock are stuck between two worlds: one that emphasizes traditional investment metrics, such as earnings-per-share, and another that banks on the broader industry's potential.To be frank, most investors -- and I'm one of them -- got caught up in the latter. Generally, we believe that it's an incredibly difficult, if not impossible to assess names like Tilray stock against traditional metrics. It's unlike a blue-chip stock where you have ample historical data to work with.InvestorPlace - Stock Market News, Stock Advice & Trading TipsAt the same time, I don't begrudge that volatility rocked this space. Sure, I'd argue against the magnitude of bearishness. Nevertheless, investors must see firm evidence that their funds are being put to good use. Due to recent controversies like the CannTrust Holdings (NYSE:CTST) scandals, these high-profile incidents impugned the entire sector.Therefore, investors lost patience, which I can appreciate. From their perspective, it was time to put up or shut up. When major player after major player failed to produce confidence-inspiring earnings results, prior weed advocates abandoned ship. * 8 Dividend Stocks to Buy for a Recession But with TLRY stock appearing to have stabilized at the $30 level, should speculators consider giving it another look? Tilray Stock Has a Great Story … If It Can Turn the PageNot too long ago, TLRY stock touched the $300 level on an intra-day basis. If you think about it, this is a remarkable concept: at one point, no matter how briefly, someone thought that Tilray stock was worth $300 a pop. In that context, losing a zero is a very good price indeed.Joking aside, my InvestorPlace colleague Ian Bezek explored the idea of capitalizing on the marijuana sector's fallout. Regarding Tilray stock, Bezek sees potential. However, he notes that other companies like Canopy and Cronos have big backers. Without similar support for Tilray, the medical cannabis specialist has an uphill challenge.It's a fair point. From the get-go, cannabis firms have sought mainstream credibility. Nothing spells out "making it" quite like a backer like Altria Group (NYSE:MO) or Constellation Brands (NYSE:STZ).In that regard, I agree with Bezek. However, Tilray stock features a powerful narrative that just got more interesting.As I'm sure you've heard, the vaping crisis has captured the nation's attention. Increasingly, the public, including some vape users, are leery about the practice.Because the vaping news cycle seemingly gets worse every day, I'm not sure how this will play out. However, cannabis, which is also a "vapable" substance, for medicinal use has only ramped up in popularity. In fact, some medical professionals who were previously opposed to cannabis are now prescribing it.And that sentiment suits TLRY stock for the long haul. Tilray's products are consumables wrapped in unassuming and discreet labeling. Designed purely for medicinal purposes, they don't have the stigma associated with stereotypical cannabis platforms.Plus, the vaping crisis provides an opportunity for TLRY to distinguish itself as a medicinal player, not a recreational one. That's crucial as it reaches out to the international markets. A Global Opportunity to AdvantageMany, if not most bullish arguments about TLRY stock focus on the potential U.S. legalization of marijuana. After all, 62% of the American people support legalization. With a total population of over 327 million, that could add up to serious coin.However, the U.S. isn't the only non-Canadian nation that's growing tolerant to weed. In a surprising report from CNBC, many Asian countries are turning toward medical cannabis. Historically known for their draconian narcotics laws, if Asia converts to green, it would be a game-changer, irrespective of what happens in the U.S. * 10 Companies Making Their CEOs Rich For example, Japan recently approved clinical trials for Epidiolex, a cannabidiol (CBD)-based oral solution for helping epileptic patients. Consequently, Japan also has a rapidly aging population. If medical cannabis gains greater acceptance there, it would represent a huge boon for specialists like Tilray. Logically, this would skyrocket Tilray stock, perhaps back to its intra-day highs.That said, TLRY stock has a financial credibility problem. Management must convince prospective buyers that it can stay in the business long enough to actualize these positive forward narratives.And that's the underlying reason why Tilray stock and its ilk are so volatile. Yes, the story is great … profound, even. But getting there is the hard part. I for one am a believer, but I can also appreciate why others remain skeptical.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars * 5 Stocks to Buy With Great Charts * 5 Goldman Sachs Stocks to Buy with Over 20% Upside Potential The post Should You Believe the Long-Term Narrative for Tilray Stock? appeared first on InvestorPlace.
[Editor's note: This story was previously published in March 2019. It has since been updated and republished.]Often, when analysts or bloggers talk up the potential of marijuana stocks, the focus is on the consumer side of the industry. But some of the best stocks in the pot sector may be medical marijuana stocks.Indeed, it's on the medical side where growth is likely to be largest in the near term. Canada did legalize recreational marijuana last year, but investors promptly sold the news in response. Almost a year later, stocks like Canopy Growth (NYSE:CGC) and Tilray (NASDAQ:TLRY) have recently touched 52-week lows.InvestorPlace - Stock Market News, Stock Advice & Trading TipsU.S. legalization is likely to be a long slog. Attitudes are mixed in Europe -- but even in legalized markets, black market (and untaxed) operators will be able to take share.Meanwhile, approval of medical marijuana (in the U.S. and elsewhere) seems to be moving at a faster pace. In such a highly regulated market, black market and even smaller producers likely will be shut out. Quality and consistency will be key. Here, scale will matter. And those companies that win early have the best chance of becoming market leaders -- and providing big gains for investors. * 8 Dividend Stocks to Buy for a Recession As always -- and particularly in this space -- investors need to mind the risks and size of their positions accordingly. But for investors who see medical marijuana stocks as the next big thing, these three are the best stocks to buy for investors enamored with weed. Medical Marijuana Stocks to Buy: Charlotte's Web (CWBHF)Source: Kevin McGovern / Shutterstock.com Charlotte's Web (OTCMKTS:CWBHF) has become one of the leading players in CBD oil (cannabidiol). And though Charlotte's Web products are made from hemp -- at least for now -- instead of marijuana, the stock still looks like one of the best plays in the sector.InvestorPlace's Matt McCall named CWBHF (the stock also trades on the Canadian Securities Exchange under ticker CWEB) as his pick for our list of the best stocks for 2019. McCall's case makes some sense. CBD oil sales are soaring, and Charlotte's Web is a market leader. As McCall pointed out, the federal farm bill in the U.S. provided a catalyst by legalizing hemp.So far this year, Charlotte's Web stock has outperformed most recreational players, gaining 65% year-to-date. But a nearly 30% pullback from August highs creates another opportunity for an attractive entry point. Second-quarter earnings appear to have disappointed some investors, but revenue growth of 45% year-over-year and 15% quarter-over-quarter suggest the growth story remains intact.There is a risk here from U.S. Food and Drug Administration regulation, but the agency seems unlikely to be a roadblock to Charlotte's Web stock's growth. With so many customers yet to try CBD oil -- and so many existing users attached -- market growth should be huge. And while CWBHF isn't cheap from a valuation standpoint, its position as a market leader should allow it to grow into its valuation. Cronos (CRON)Source: Shutterstock Like most major cannabis plays, shares of Cronos (NASDAQ:CRON) have declined of late. CRON stock has dropped by 50% since early March.The declines may continue. CRON, like many of its peers, still isn't cheap. And it still isn't profitable. But there's a lot to like here, particularly for investors more interested in the medical side of the industry than the consumer side.To be sure, investors see Cronos as a consumer play. The $1.8 billion investment by tobacco giant Altria (NYSE:MO) brings in not only cash, but Altria's advertising expertise and distribution reach.But investors can't ignore that Cronos is a medical marijuana stock as well. In fact, it's that business that drove the majority of its revenue until recently. And it also has given the company a beachhead in multiple markets around the world, from its home market of Canada to Germany, Israel and Poland. * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars Cronos is looking to export medical marijuana via a joint venture in Israel. Its partnership with Gingko Bioworks aims to biologically manufacture expert cannabis strains. Those strains could be used for consumer products -- but they might also have medical applications as the effect of cannabinoids is better understood.The broader case for CRON stock is that the company isn't looking to be a producer, where management sees prices and profits likely to be minimal as supply increases. If that strategy works, it will allow Cronos to profit from higher-margin derivative sales to consumers. But that high-level expertise will also make Cronos a potential leader on the medical side as well. Aurora Cannabis (ACB)Source: ElRoi / Shutterstock.com Like CRON stock, Aurora Cannabis (NYSE:ACB) has a "falling knife" chart. ACB stock touched a seven-month low at the beginning of the month, and a rebound was undercut by a disappointing fiscal fourth-quarter report on Thursday.Given that Aurora likely will need to raise capital relatively soon, patience is probably advised here.But from a long-term standpoint, there's an attractive case here. Aurora's global reach is probably greater than that of any cannabis play at the moment. Medical sales drove just 30% of net cannabis revenue in Q4, but that figure should rise as efforts in Germany and Latin America drive growth.Aurora will in part be a consumer play, as is the case for most marijuana stocks at this point. But its medical business is already large - and growing. In fact, Aurora already serves nearly 90,000 medical marijuana patients worldwide. As that figure rises, so will Aurora's revenue. Once profitability follows -- which should be next year -- the long slide in ACB stock may finally reverse.As of this writing, Vince Martin has no positions in any securities mentioned. More From InvestorPlace * 4 Top American Penny Pot Stocks (Buy Before June 21) * 10 Stocks to Buy That Wall Street Expects to Soar for the Rest of 2019 * 7 Value Stocks That Are Flying Under the Radar * 6 Mouth-Watering Fast Food Stocks for Growth Investors The post 3 Medical Marijuana Stocks to Buy appeared first on InvestorPlace.
[Editor's note: This story will be updated each week with new stocks and analysis. Please check back often for Mark's latest take on marijuana stocks.]Unfortunately technical analysis has a bad reputation. However, it is probably well deserved. Most of the technical analysis of marijuana stocks that I see is dubious at best and downright terrible at worst. Many analysts mindlessly try to identify patterns without really understanding what they are supposed to mean. Some analysts are even proponents of bizarre techniques like Gann Theory and Elliot Waves. My belief is that these methods are better suited for a Twilight Zone episode than for making money in real markets.In financial markets, there are certain price levels that are more important than others with regards to the amount of supply and demand that exists at them. In addition, stock prices are always doing one of three things. They are either going up, going down or staying the same. You can see this by looking at almost any chart. If you understand technical analysis and apply it correctly, you can identify these important levels and trends.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 8 Dividend Stocks to Buy for a Recession Knowing where these levels are will help you profit. For example, suppose you want to buy a stock if it gets down to $5 a share and then sell it if it rallies to $10. If there is support around the $5.50 level, the stock could fall to $5.50 and then rally to $10. Because you didn't know where the support was, you would have missed out on a significant profit for 50 cents. Marijuana Stocks With Levels to Watch: Aphria (APHA)Aphria (NYSE:APHA) manufactures and sells medical cannabis in Canada and internationally. It currently has a market cap of about $1.5 billion.APHA stock has looked rough recently, down more than 7% in the past week. This is probably sympathy pain due to Aurora Cannabis (NYSE:ACB) being downgraded at Stifel from "hold" to "sell."If it continues to head lower, there will probably be some support around the $6 level. This is where the two most recent lows were on Aug. 15 and Aug. 27.If it gets oversold it may have a tradable rally off of the level. The key is to not try to catch the bottom. Bottoms are typically more volatile than tops. This is because tops are created by hope while bottoms are created by fear.A better strategy could be to wait until the downtrend is broken before buying it. In other words, buy it after it starts to rally. You won't get the low trade, but the risk-reward ratio is better than trying to guess where the exact bottom is. Hexo (HEXO)Hexo (NYSE:HEXO) produces, markets and sells cannabis. The current market cap is about $985 million.When a stock is rallying, the forces of demand are in control. When a stock is selling off, the forces of supply are in control. A reversal pattern shows a change of this leadership.From Aug. 28 through Sept. 6, buyers controlled the market. The stock rallied every day. Then the action on Sept. 9 formed a reversal pattern. It has dropped by about 10% since then.The up days are blue and the down days are red on the chart. On Sept. 9, the stock opened at the day's high. The buyers were in control that morning. * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars Then the stock sold off over the course of the day and closed at the lows. This action means that the forces of demand have run out of steam and the forces of supply have taken over. These dynamics are what forms a reversal pattern on the chart. Cronos (CRON)Cronos (NASDAQ:CRON) grows and sells marijuana. Its current market cap is $3.8 billion.CRON stock continues to trend sideways above support around the $10.75 level. It has been trading in the same range for about one month. If the support at the $10.75 level breaks, it will probably become a resistance level.How does this happen? Why would a level that was support become resistance? Consider the following.The investors who bought a stock at a support level are feeling good when it bounces and they are making money. But then when the level breaks and the stock goes lower, they are now looking at a loss. They tell themselves that if the stock rallies back up to that level, they will sell it so that they can get out of it without losing any money. They place their sell orders at the level, and this supply of stock is what creates resistance. The Green Organic Dutchman (TGODF)The Green Organic Dutchman (OTCMKTS:TGODF) engages in the provision of medical cannabis solutions. It currently has a market cap of around $500 million.Aurora Cannabis was a large holder of TGODF stock. It recently announced that it sold its position of 28.8 million shares to a consortium of Canadian Banks. This caused TGODF to drop by about 10%.There is a chance that the consortium, or at least members of it, have been selling the shares they acquired in the block transaction. This could be what is forcing the stock lower. If this is the case, then when this selling comes to an end, there is a good chance that we will see a meaningful rebound. * 7 Momentum Stocks to Buy On the Dip TGODF is also oversold. The last time that it was this oversold, in July, a large rally followed. The term "oversold" refers to momentum. It is a measurement of where the stock is today versus where it was X many days ago. When this number reaches an extreme to the downside it is considered to be oversold. Aurora Cannabis (ACB)Aurora is a Canadian-based company that grows and sells medical cannabis products. It currently has a market capitalization of about $5.4 billion.ACB stock has been crushed over the past week. It has dropped from $6.50 to $5.30. Last week the company reported a loss for the fourth-quarter that was larger than expected and revenue that was short of estimates. Because of this, Stifel Nicholas downgraded the stock from "hold" to "sell."When the stock dropped, it found support around $5.50. This was expected because it is where the recent lows were. The next morning, the level broke and the stock traded lower. The $5.50 level may become a resistance level now.If it continues to trade lower, it may find support around the $5 level. This is because this level was where the lows were in December. It is also an important level psychologically. If ACB is oversold when it reaches that level, there is a good chance that it will be a low-risk buying opportunity. Medicine Man Technologies (MDCL)Medicine Man Technologies (OTCMKTS:MDCL) provides cultivation consulting services to cannabis growers. The current market cap is about $133 million.MDCL stock seems to be failing at resistance after becoming overbought.The levels around $3.90 were the top in April, and then again in May and June. This is the reason why there is resistance at this level.Like oversold, overbought refers to the momentum of the stock. When this number reaches an extreme to the upside, it is considered to be overbought. * 7 Tech Stocks You Should Avoid Now This is an important dynamic to understand about markets. When they are oversold and get to support, they tend to rebound. When markets are overbought and get to resistance they tend to sell off, as is the case here. Kushco Holdings (KSHB)Kushco Holdings (OTCMKTS:KSHB) sells packaging products and solutions. It currently has a market cap of about $270 million.On Sept. 11, the company reconfirmed its guidance and discussed what it believes are positive developments. Apparently shareholders were not impressed. The stock has been in a free-fall since then.I do not know when (or if) the selloff will come to an end. A clue that may signal that this is about to happen could be extremely large volume. This would be a sign of capitulation and would be a short-term bullish dynamic for the stock.Capitulation means that the sellers are sick of the misery the stock is causing and they just want to get out. They tell their brokers to sell it and they don't even care about the price. They want it to go away. This usually results in very-large-volume trading. This could be a short-term bullish dynamic.At the time of this writing Mark Putrino did not have any positions in the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 8 Dividend Stocks to Buy for a Recession * 10 Companies Making Their CEOs Rich * The 7 Best S&P 500 Stocks of 2019 So Far The post 7 Marijuana Stocks With Critical Levels to Watch appeared first on InvestorPlace.
MediPharm Labs Corp. (OTC: MEDIF) (TSX: LABS) said Thursday it has entered into a manufacturing agreement for the filling and packaging of vaporizer devices for Cronos Cronos Group Inc's (NASDAQ: CRON) (TSX: CRON) adult-use brand, COVE. “On the eve of legalization of concentrates products in Canada, we are delighted to add Cronos Group, to our expanding turnkey white-label platform,” MediPharm CEO Pat McCutcheon said in a statement. This is not the first time the two companies collaborated, MediPharm said.
In his final "Executive Decision" segment of Mad Money Wednesday night, Jim Cramer sat down with Mike Gorenstein, chairman, president and CEO of Cronos Group , the cannabis company with shares that have fallen from their highs of $25 in early February to just under $11 Wednesday as the group has fallen out of favor. Gorenstein there are a lot of CBD companies out there, but very few CBD brands. When asked about the recent vaping controversy, Gorenstein noted that nicotine and cannabis are very different products and in Canada, cannabis vaping products are not yet allowed to be sold.
Tilray (NASDAQ:TLRY), like so many marijuana stocks, is having a terrible year. Yes, some traders like to make fun of anyone that bought Tilray stock near its $300/share peak. But don't forget that as recently as this January, Tilray stock still traded for as much as $100 per share. This year alone, shares have lost more than half their remaining value.Source: Jarretera / Shutterstock.com That shouldn't come as a surprise. As I explained in May, the company was doing better on earnings but the supply growth from other producers overwhelmed Tilray's progress. That's been a valid concern so far. TLRY stock has continued to sink as the oversupply in the Canadian marijuana market has further intensified.The worst may finally be over, however. Tilray stock has rebounded more than 20% from its 52-week low since the start of September.InvestorPlace - Stock Market News, Stock Advice & Trading Tips * 7 Momentum Stocks to Buy On the Dip Is Tilray ready to rally again? Tilray's Growth Strategy Seems ReasonableDespite the punishing decline in Tilray's stock price, management hasn't panicked. As I explained in that previous article, Tilray CEO Brendan Kennedy has focused on disciplined supply growth at a reasonable price. Tilray's deals, such as buying Manitoba Harvest came at affordable prices rather than paying big bucks as firms like Canopy Growth (NYSE:CGC) have done with some of their acquisitions.Tilray has also wisely used convertible bonds to raise funds. The convert feature is now way out of the money, ensuring that shareholders won't be diluted unless Tilray shares go on a monster run. This was a savvy way to raise nearly half a billion in funds without hitting TLRY stock owners with much dilution.Finally, while the international market hasn't taken off that quickly, Tilray has a shot there as well. The company is building out its facilities in Portugal -- again at a reasonable build-out cost. Still Hasn't Reached Critical MassTilray stock bears, on the other hand, continue to question Tilray's prospects. While the company certainly has avoided some of the excesses of its rivals, at the end of the day you need revenues and profits to justify your share price.And Tilray simply doesn't have much of either. Tilray's market cap, even with the stock at just $30, is still almost $3 billion. That's a huge valuation for a company that has produced less than $100 million in revenues over the last year. If revenues reach $200 million over the next year or two and Tilray manages to maintain a still robust 10x price/sales ratio, that'd imply an additional 33% downside on TLRY stock to around $20/share.Also, despite the small revenue base, Tilray has a ton of product lines. With the addition of Manitoba Harvest, it now has foods and supplements in addition to the more standard fare. And Tilray has international operations in a variety of countries. Yet, it hasn't added up to a critical mass that can deliver sustainable profits just yet. Like with Aurora (NYSE:ACB), Tilray has a lot of irons in the fire, but there's no sign that any particular thing is heating up just yet. CannTrust Reminds Us Of Dangers In The Cannabis IndustryWhile Tilray stock has enjoyed a welcome rebound, the industry isn't out of the woods yet. The huge supply and demand imbalance continues to weigh painfully on the sector. And that's not all. Regulatory risk remains a major concern.Tuesday brought us a fresh reminder on that front. CannTrust (NYSE:CTST) stock plunged another 14% on the day. CannTrust hit new all-time lows after admitting that Health Canada had suspended the company's license to produce and sell marijuana. It's a suspension, rather than a full revocation of their operating license. Still, it was a huge blow to the company's already damaged credibility.The license suspension on its own shouldn't come as a huge surprise. As InvestorPlace's Josh Enomoto recently wrote, CannTrust suffered two major scandals. The first involved illegal growing operations hidden with false walls. CannTrust fired its CEO with cause, along with other top employees, as a result. The company also somehow had black market seeds get mixed into its inventory.Adding it all up, CannTrust stock is now down a shocking 90% from where it traded earlier in 2019. That's a nearly total wipeout for a New York Stock Exchange-listed company. While there's nothing that dramatic going on with Tilray from a scandal point of view, CannTrust's collapse serves as a fitting reminder that this is a new industry that will have tons of growing pains.Also, it's worth noting that marijuana companies have started getting more traction in mainstream stock indexes and associated ETFs. However, the index operators will now kick CannTrust stock out of the primary Canadian stock index and related ETFs, and other fund operators may be slower to include pot stocks like Tilray in their funds as a result of this incident. Tilray Stock VerdictTilray has much better management than CannTrust, thank goodness. But that doesn't mean that is time to get too excited about the recent rebound in the TLRY stock price.The cannabis industry is continuing to face massive growing pains. There will be winners eventually. But more companies will end up like CannTrust as well. The industry is young and a lot of competition has to fall by the wayside for the survivors to prosper. * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars Tilray, without a major partner, hasn't yet proven that it will be able to be one of the industry's eventual winners. For now, Cronos (NASDAQ:CRON) and Canopy, with their major backers, might be a safer choice until the industry's slump ends.At the time of this writing, Ian Bezek had no positions in any of the aforementioned securities. You can reach him on Twitter at @irbezek. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 CBD Stocks to Buy That Are Still Worth Your Investment Dollars * 5 Stocks to Buy With Great Charts * 5 Goldman Sachs Stocks to Buy with Over 20% Upside Potential The post Is Tilray Stock's Crushing Bear Market Finally Over? appeared first on InvestorPlace.
Cronos Group (NASDAQ:CRON) is not alone as its shares have fallen more than 33% since April 5. Compliance issues and regulatory delays in Canada, have also weighed on Tilray (NASDAQ:TLRY), Canopy Growth (NYSE:CGC) and Aurora Cannabis (NYSE:ACB). CRON stock, though, has fared the best of that bunch. Yet, despite the problems, you'd be hard-pressed to find a faster-growing industry than cannabis. According to recent research, the global market size is expected to reach $66.3 billion by the end of 2025, though these estimates vary widely. InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut Wall Street still has mixed reactions when it comes to Cronos Group stock. Out of the 14 analysts reviewing the stock, eight have given it a hold rating. Here are a few reasons why analysts aren't more bullish about CRON stock. Cronos Delivered Mixed Q2 ResultsCRON stock hit a new 52-week low in early August, thanks in part to a mixed earnings report. Initially, the company's shares rose due to better-than-expected sales. But Cronos Group also saw its operating losses widen. And on the earnings call, company executives said they expect these losses to increase during the second half of the year. This is due to Cronos' investments in sales and marketing and other growth initiatives. * 10 Battered Tech Stocks to Buy Now As well, Cronos Group lags behind other cannabis companies in terms of production. While it produced nearly 1,600 kilos during the second quarter, that's less than one-fifth of the the 29,000 kilos Aurora Cannabis produced. Vaping Concerns Could Affect CRON StockCanadian cannabis companies are currently waiting on the second wave of cannabis legalization, set for the middle of next month. This will include a limited supply of items like vapes, cannabis-infused beverages, and edibles.But there is a growing concern in the U.S. about the safety of vaping. More than 450 Americans dealt with vaping-related lung illnesses and five of these patients died. It's unclear what's causing the illnesses but there does seem to be a link between THC-infused products and vaping. (My InvestorPlace colleague Josh Enomoto has a contrarian take on this today.) * 7 Momentum Stocks to Buy On the Dip In March, Cronos Group received an equity investment from the tobacco giant Altria Group (NYSE:MO). Altria also owns a stake in the e-cigarette makers Juul, which gives Cronos access to additional vaping technology. However, this could pose a problem is the health-related concerns continue to gain traction. Expect More Supply Issues in CanadaCanada continues to deal with ongoing supply issues since legalizing cannabis in October 2018. The regulatory agency Health Canada is dealing with a backlog of licensing applications.Most likely, Canada will still be dealing with this issues when cannabis derivatives hit the shelves in December. And it will continue to slow the ability of companies like CRON to harvest, process, and sell cannabis.As of this writing, Jamie Johnson did not hold a position in any of the aforementioned stocks. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Recession-Resistant Services Stocks to Buy * 7 Hot Penny Stocks to Consider Now * 7 Tech Stocks You Should Avoid Now The post Cronos Group Stock Continues to Lag as Canada Headwinds Hold Back Sector appeared first on InvestorPlace.
Anyone who's been halfway paying attention to the action in cannabis stocks knows it hasn't been an easy ride. From the most well-known names to the most obscure, it's been a volatile and difficult ride. Aphria (NYSE:APHA) is no exception, with Aphria stock down big from its highs.Source: Shutterstock Shares have fallen roughly 40% from the February highs and almost 60% from its 52-week highs. To say that it's been a rough ride is putting it lightly and these two performance marks emphasizes as much.Earlier this week, we highlighted a silver lining in Aurora Cannabis (NYSE:ACB). After the company reported earnings, shares took a tumble. But so far at least, the stock has avoided a lower low. That's the positive take despite the revenue miss and bearish reaction in the stock price.InvestorPlace - Stock Market News, Stock Advice & Trading TipsHowever, APHA stock has its own silver lining: the stock is actually trending higher. Aphria Stock Is Stronger Than It SeemsComing into August, Aphria stock had been dragging hard. Shares were down almost 50% in just a few months and sentiment couldn't have been worse. Then better-than-expected earnings propelled shares higher, as the stock ran from a low of $5.02 to roughly $7.50 just a day later.The one-day ~50% rally set the tone for APHA, even though shares are now lower at this point. I think the stock is down from its post-earnings high as investors try to work through various resistance points and as they fight the bearish stigma attached to the industry right now. * 7 Tech Stocks You Should Avoid Now There's no reason to mince words about it: Cannabis stocks are out of favor right now. That's not likely to persist forever, which is why it's important to look for stocks showing relative strength. While Aphria stock is not showing strength relative to the market, it is showing strength relative to its peers.Identifying stocks with relative strength is because they're the ones that tend to outperform when the group comes back in favor.Even though shares have been under pressure lately, Aphria stock is still up 16.2% so far in 2019. That's better than Canopy Growth (NYSE:CGC), Aurora Cannabis and Cronos Group (NASDAQ:CRON). CRON, ACB and CGC are all positive on the year too, but lag APHA.The performance is also better than Tilray (NASDAQ:TLRY) and New Age Beverages (NASDAQ:NBEV), which are both down in 2019.Of the group, Aphria stock is the top performer over the last six, three and one month. For the last timeframe, APHA stock is up almost 11%. So this is certainly worth paying attention to. The Exact Breakout Point As you can see on the chart above, we have an ascending triangle formation developing in Aphria stock. That's where uptrend support (blue line) continues to squeeze a stock higher against a static level of resistance. It's a bullish trade development, as investors look for a breakout.In this case, recent resistance has been near $7.20. But that's not the big breakout point, in my view. Instead, I'm looking at the $7.60 level. This level has been notable resistance since the April breakdown. If Aphria stock can clear it, it will also mean that APHA has reclaimed its 200-day moving average.In this case, clearing $7.60 could trigger a big-time breakout. The first upside target is 61.8% retracement at $8.68. Above that and I'm looking for a gap-fill up to $9.85.There is risk, though.If uptrend support fails, it puts the ascending triangle formation at risk of failing. Below it and the 50-day moving average is the first downside target. Below that puts the $5.80 level on watch and below that, the $5 mark is possible. The Bottom Line on APHA StockThe bottom line here is simple: Aphria stock is the most well-behaved stock in the cannabis space showing the most relative strength among its peers. Its stock has a very clear setup on the charts, while its most recent earnings report was good enough to ignite the recent rally.A glance at the balance sheet reveals $422 million in cash and short-term equivalents. That's notable, given the stock's $1.67 billion market cap.Further, current assets of $577 million is more than five times its current liabilities of $102.5 million. Total assets also significantly outweigh total liabilities, total $1.8 billion vs. $524 million. * 7 Momentum Stocks to Buy On the Dip In other words, Aphria is more than capable of covering its short-term obligations as it focuses on growing its business. If there's a speculative cannabis stock worth monitoring right now, it's Aphria in my opinion.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 Momentum Stocks to Buy On the Dip * 7 Dow Titans Breaking Higher * 5 Growth Stocks to Sell as Rates Move Higher The post Aphria Stock Is the Most Well-Behaved Pot Stock on the Market appeared first on InvestorPlace.
Although not a pure cannabis play, New Age Beverages (NASDAQ:NBEV) has had to deal with the same volatility. Since January's opening price, NBEV stock has dropped a staggering 37%. However, the downfall isn't due to a lack of trying.Source: Shutterstock Early this year, NBEV announced an addition to its Marley-branded beverages called Marley+CBD. Infused with cannabidiol or CBD, the cannabis compound brought a therapeutic element to the artisanal beverage series. Plus, the positive notoriety associated with CBD gave New Age Beverages stock a nice lift following the announcement.This past summer, New Age CEO Brent Willis showcased the company's Nhanced CBD line of oils, creams and lotions. Launched in Hong Kong, NBEV intends to expand into Japan and China next.InvestorPlace - Stock Market News, Stock Advice & Trading TipsUnfortunately, NBEV stock peaked in early February. From then on, save for some smatterings of good news, it's been all downhill for shares.That said, New Age Beverages stock appears to have found a bottom around the psychologically significant $3 level. Granted, most conservative investors should ignore this technical phenomenon. But for the speculators among you, NBEV might be an interesting play.In a strange way, I say this because of the current vaping crisis. Federal health agencies are investigating a recent spike of acute lung illnesses which they believe are associated with vaping. However, evidence suggests that illicitly sourced THC-infused vaping liquids are the real culprit. * 10 Battered Tech Stocks to Buy Now In the context of companies like Cronos Group (NASDAQ:CRON), the vaping crisis is a distraction. For the time being, it's probably kept NBEV stock in check, too. But in the long run, this issue may benefit New Age Beverages. Here's why: A Platform Crisis Will Give Way to CuriosityOne of the challenges of cannabis-based companies is overcoming the stigma associated with the plant. Typically, the term "cannabis" conjures up images of stoners smoking, or in this case vaping a joint.As my InvestorPlace colleague Will Ashworth noted, vaping or smoking products will always be a tough sell, irrespective of alleged health benefits. But products like beverages, oils and creams? That is a much more palatable situation, one that clearly favors New Age Beverages stock.Recently, I had a chance to sit down with corporate representatives John Weston and Paul Dibrito of cbdMD (NYSEAMERICAN:YCBD). During our conversation, we discussed the wide-ranging product diversity of the CBD and hemp space. For instance, cbdMD features ample ways to enjoy hemp-based therapies beyond vaping. They also have a pet product division called Paw CBD.What does this have to do with NBEV stock and the vaping crisis? No matter what's going on right now, an increasing number of people are interested in CBD for therapeutic use. Sure, the vaping platform might take a hit (no pun intended) from the present crisis. But the core substance itself has substantial support.Therefore, it's much easier to evangelize the benefits of hemp-based products to your family and friends when using socially appropriate platforms. You might not be able to roll a fatty for grandma, no matter how much she complains of pain. But a capsule or a refreshing beverage? That's much easier to swallow (pun intended).Plus, not everyone is healthy enough to smoke or vape. For instance, more than 25 million Americans have asthma. Vaping might not be the best choice for them. But a CBD-infused beverage, as far as I'm aware, is consumable by nearly everyone. NBEV Stock and Long-Term AmbitionsInterestingly, NBEV CEO Willis was formerly a Coca-Cola (NYSE:KO) and Anheuser Busch Inbev (NYSE:BUD) executive. As you might imagine, he's now a strong advocate of legal cannabis.But Willis' push to drive into Asia strikes me as extremely ambitious. When he mentioned Japan, I rolled my eyes. This is the country that arrested and deported former Beatle Paul McCartney. * 7 Momentum Stocks to Buy On the Dip Moreover, when Canada legalized recreational marijuana, the Japanese government issued a stern warning to its citizens living abroad: don't touch the stuff or risk severe penalties.In my opinion, this was an empty threat. However, it does demonstrate Japanese society's highly conservative viewpoint toward the cannabis plant.Naturally, this is an uphill battle for New Age Beverages and NBEV stock. At the same time, if you're going to break into Asia, doing so with CBD-infused beverages probably gives you the best chance of success.But as I said earlier, that sentiment should apply to almost anyone. New Age Beverages stock is incredibly risky. Due to its palatable platform, though, it might have an outside chance of delivering the goods.As of this writing, Josh Enomoto did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Recession-Resistant Services Stocks to Buy * 7 Hot Penny Stocks to Consider Now * 7 Tech Stocks You Should Avoid Now The post Why the Vaping Crisis Might Benefit CBD-infused New Age Beverages Stock appeared first on InvestorPlace.
Interested in IPO stocks like Uber, Beyond Meat, Zscaler and Peloton? Learn lessons from Facebook, Alibaba and Snap before investing in IPO stocks.
Aurora Cannabis (NYSE:ACB) recently reported earnings and sales came up short. As such, Aurora Cannabis stock sold off. It's been a painful run for cannabis stocks over the past few months as they desperately lack a catalyst to send their share prices higher.Source: Shutterstock Earnings clearly won't be it for Aurora Cannabis stock at this point. However, there is one silver lining to the recent decline: no new lows.That's right. Sometimes good news can be found in bearish developments. Should ACB stock log a higher low, then it may be on the road to recovery. Let's explore:InvestorPlace - Stock Market News, Stock Advice & Trading Tips Revenue MissOn September 11, Aurora Cannabis reported revenue of 98.84 million CAD. That missed analysts' expectations by more than 4.5 million CAD. While that many not seem like a big deal, investors have to take the miss in context. * 7 Tech Stocks You Should Avoid Now It's the company's second straight revenue miss and its fifth miss out of the last six quarters. Further, Aurora Cannabis doesn't have the type of valuation that supports its stock price when it misses on top-line sales. That goes for most if not all of the cannabis industry, including Canopy Growth (NYSE:CGC), Aphria (NYSE:APHA), Tilray (NASDAQ:TLRY), Cronos Group (NASDAQ:CRON) and others.In other words, these companies have incredibly high valuations that are all banking on equally incredible growth. And while sales quintupled year-over-year in the most recent quarter for ACB, it came up short of expectations.It doesn't help that margins have been under pressure as well.It's not that Aurora Cannabis has a poor balance sheet or that the cannabis market is hitting a dead end. It's that sentiment is not bullish, and momentum is bearish for cannabis stock right now. ACB and others need some positive catalysts, and missing headline expectations isn't one of them. Trading Aurora Cannabis StockAhead of earnings, Aurora Cannabis stock had rallied through the 50-day moving average. However, it ran right into downtrend resistance (blue line). Had the results been strong, investors may have been in store for a strong finish to the week. Click to EnlargeNow, shares are down about 8.5% from Wednesday's close. With the fall, the ACB stock price is back below the 20-day and 50-day moving averages. When these two moving averages went from support to resistance is outlined very clearly on the chart via purple arrows.That was a prelude to failing support that ushered in a wave of selling. Luckily for InvestorPlace readers, they saw this break months ago and have been able to sidestep some of the pain.The post-earnings decline also solidified downtrend resistance. As we discussed at the top of the article though, the silver lining is that ACB stock has not made new 2019 lows -- at least, not yet.From here, bulls need to make sure Aurora Cannabis stock stays above $5.40. If this level gives way, a test of downtrend support becomes possible, as does a test of the $5 mark. Instead, if ACB stock can hold up and avoid a new low, it can start to work higher despite a lower-than-expected revenue result. Rallying on weaker-than-expected results can be viewed as a bullish development, as it may suggest all the bad news is priced in.The simple way to evaluate Aurora Cannabis stock from here? Note the $5.40 benchmark. Below it is bad, above it is constructive. Bottom Line on ACB StockLet's not mince words here: Aurora Cannabis is very much a speculative "prove-it" stock. That is, it's not a blue-chip name like Microsoft (NASDAQ:MSFT) or Apple (NASDAQ:AAPL). Nor is it a dependable staple going through a hard time like Boeing (NYSE:BA).While Aurora Cannabis is one of the notable names in a high-growth emerging industry, it's still a speculative name that needs to prove to investors that it can turn that revenue growth into cash flow and continue to expand with discipline. From CFO Glen Ibbott:We continue to see strong growth in cannabis revenues in both medical and consumer categories. Our cultivation execution continues to drive production costs lower and improve gross margins. Aurora's diversified product portfolio remains in demand with patients and consumers alike.Aurora has seen a significant increase in assets, climbing from $1.43 billion at year-end 2018 to $4.2 billion in its most recent quarter. In the same time frame, total liabilities have increased from $253 million to approximately $850 million. While liability growth outpaces asset growth, its assets far outweigh liabilities.ACB has staying power, at least in the short term. But what it and the recent of the cannabis space really need is a catalyst and better sentiment.Bret Kenwell is the manager and author of Future Blue Chips and is on Twitter @BretKenwell. As of this writing, Bret Kenwell did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Recession-Resistant Services Stocks to Buy * 7 Hot Penny Stocks to Consider Now * 7 Tech Stocks You Should Avoid Now The post Is Aurora Cannabis Stock a Buy Despite a Revenue Miss?Â appeared first on InvestorPlace.
Aurora Cannabis (NYSE:ACB) joined companies like Tilray (NASDAQ:TLRY), Canopy Growth (NYSE:CGC) and Cronos (NASDAQ:CRON) when its recent earnings report sent ACB stock on a 9% tumble.Source: Shutterstock Because of this, there has been a wide-scale bear move. The fact is that investors have been too optimistic about the growth prospects from Canada. There have also been issues with supply chains in the country as well as black market activities.So when may things change? It may take a while.InvestorPlace - Stock Market News, Stock Advice & Trading TipsBut even before this, the ACB stock price had been under increasing pressure. Since March, the shares have gone from $10 to $5.70.Now, as for the fiscal fourth-quarter earnings report for the company, there was still lots of growth. On a quarter-over-quarter basis, revenues jumped by 52%. There was also an annual 72% ramp. * 7 Tech Stocks You Should Avoid Now Yet Wall Street wanted much more. ACB reported C$98.9 million on the top-line while the consensus was calling for C$103 million. Note that before this the company had tempered its annual guidance.Something else about the earnings report that likely weighed on Aurora Cannabis stock was the softness in the global business. Consider that there was only a 12% increase in the medical segment in Europe to C$4.5 million.InvestorPlace.com's Josh Enomoto summed things up as follows:"The cannabis market has stepped out of the honeymoon phase and into the 'show me' phase. In other words, investors are tired of hearing bedtime stories. Instead, they want some evidence that these tales are based on facts." Bad News for ACB StockAurora Cannabis stock got hit again this week, off about 4%. The reason: negative commentary from Stifel Nicolaus analyst Andrew Carter. Primarily because of the earnings report, especially with the sluggishness in foreign markets, he slapped a "sell" rating on the shares. He lowered his price target from C$7 to C$5.He also thinks the terrible sentiment in the cannabis sector will make it more difficult for Aurora Cannabis to raise more money. No doubt, this could mean that any equity offering could see substantial dilution - which could mean even further deterioration of the stock price. An Upside for ACB StockDespite all the bad news, there remain silver linings. Aurora Cannabis has the advantage of scale and a global infrastructure (there are 15 production facilities, with sales and operations in 25 countries). For example, during the quarter the company produced over 29,000 kilograms, compared to 15,590 for the prior quarter.Another advantage for Aurora Cannabis stock is that it has Nelson Peltz as a strategic advisor. He is a top activist investor who has extensive experience with consumer goods companies like Procter & Gamble (NYSE:PG), Mondelez (NASDAQ:MDLZ), and Wendy's (NASDAQ:WEN). Peltz should be invaluable in providing high-level contacts and funding resources.And finally, there is the catalyst of "Legalization 2.0." This refers to when Canada will legalize the sale of cannabis edibles, beverages and vaping products. The law will require a 60-day permit process, after which sales will be allowed.This should help to boost revenues. However, in light of the concerns with cannabis companies right now, there may not much action with Aurora Cannabis stock until next year. So for now, there is probably no rush to make a buy.Tom Taulli is the author of the book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Recession-Resistant Services Stocks to Buy * 7 Hot Penny Stocks to Consider Now * 7 Tech Stocks You Should Avoid Now The post It Doesn't Look like ACB Stock Is Going Anywhere This Year appeared first on InvestorPlace.
The consensus target price for Cronos Group stock fell to 19.88 Canadian dollars from 20.3 Canadian dollars in August, which represents a fall of ~2.07%.
For the cannabis sector, there has been a grueling bear market since April or so. Even the tier-one companies have suffered major double-digit declines, such as Canopy Growth (NYSE:CGC), Cronos Group (NASDAQ:CRON) and Tilray (NASDAQ:TLRY).Source: Shutterstock Then again, the run-up that came before the downtrend was parabolic as the sentiment got excessive. Let's face it, there was too much optimism about the potential impact from the legalization of the Canadian market. It also did not help that there were problems with the supply chain as well as black market activity. So when things did not pan out as expected, a painful correction was inevitable.But I do think this is presenting some interesting opportunities in the space. For example, take a look at Hexo (NYSE:HEXO) stock, which has been cut in half during the past six months.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThe company is certainly well positioned to benefit from the long-term potential in the Canadian market. Keep in mind that Hexo dominates the Quebec market, with a 30% share.What's more, the company continues to make strides with production. Hexo has aggressively expanded its footprint to about 1.8 million square feet, with annual production of 150,00 kilograms. * 7 Discount Retail Stocks to Buy for a Recession M&A has also been critical. To this end, Hexo shelled out $197 million for Newstrike Brands Ltd, which added to annual capacity by about 150,000 kilograms.Yet the focus on production has not been about quantity over quality. Consider that the company has been a heavy investor in innovation and R&D, which has allowed for higher margin offerings.According to Hexo CEO Sebastien St-Louis, on the latest earnings call: "We now have 25 PhDs on staff. They're focused on developing new and innovative products for the market, best-in-class technology for our 'Powered by HEXO' experiences. Building on our innovative technology is critical in building brands." Strategic Alliance With Molson Coors BrewingI think a critical factor for Hexo stock is its partnership with Molson Coors Brewing (NYSE:TAP). No doubt, there are the benefits of leverage from the broad capabilities of global distribution, marketing expertise and logistics. Such factors will likely prove essential in breaking through the noise in the marketplace.The deal with TAP will also allow Hexo to benefit from the "Cannabis 2.0." This refers to October 17th, when it will be legal to sell cannabis extracts in Canada (although the selling will not be allowed until mid-December because of the requirement to get a permit). The market is likely to be significant, with the potential for $1 billion+ in spending next year.To prepare for this, Hexo and TAP have been jointly creating a variety of products, such as beverages, gummies and vapes. In other words, there could be a nice catalyst for revenue growth. For example, in regards to fiscal year 2020, Hexo is projecting that the top-line will hit a hefty $400 million and that there will be a doubling in fiscal Q4. Bottom Line On The Hexo Stock PriceGiven the consistent downtrend in Hexo stock, it's understandable that investors want to back off. There are legitimate fears that this could be the proverbial "falling knife."Yet it really does look like the sentiment for Hexo stock has gotten to overly negative levels. Besides, the growth story looks intact, especially with Cannabis 2.0, and the company has strong production and a solid position in the Canadian market. So for investors with a long-term perspective, I think Hexo stock looks like an interesting play at current levels.Tom Taulli is the author of the book, Artificial Intelligence Basics: A Non-Technical Introduction. Follow him on Twitter at @ttaulli. As of this writing, he did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post The Molson Coors Deal Will Be a Game Changer for HEXO Stock appeared first on InvestorPlace.
Cronos Group (NASDAQ:CRON) stock fell 5.2% on Sept. 9 as a result of investors' concerns about the cannabis company's focus on vaping products. Those offerings have come under severe scrutiny in recent weeks, due to the death of six people from lung disease related to their use. Source: Shutterstock InvestorPlace - Stock Market News, Stock Advice & Trading TipsCronos isn't the only cannabis company to have a vested interest in the success of vaping pens, but at the moment, it appears to be the biggest player taking it on the chin as a result of the recent health scare. If you own CRON stock, now is the time to be thankful that Altria (NYSE:MO) owns 45% of the cannabis company, with an option to buy an additional 10% in the future. Here are three reasons why that's the case. * 7 Discount Retail Stocks to Buy for a Recession Altria Understands Lungs Better Than MostWho would have more knowledge about how our lungs operate than a company whose products are directly responsible for harming them?Altria would not have made a $12.8 billion investment in Juul Labs or a $1.8 billion investment in CRON stock if it didn't understand the health risks associated with vaping. MO has been down this road many times with cigarettes. The fact that President Trump and his administration are trying to crack down on the sale of flavored e-cigarettes, while understandable, isn't really crucial for CRON stock. According to the Center for Disease Control and Prevention, 480,000 Americans die each year due to smoking. That's a staggering amount. However, we haven't seen cigarettes outlawed as a result of that sad situation. In fact, the FDA is currently trying to ban the sale of menthol cigarettes, but the tobacco companies will continue to fight the agency's legal efforts for years to come. Flavored e-cigarettes will likely take a long time to ban. The reality is that Altria understands what's at stake when it comes to vaping and e-cigarettes. They, along with the rest of the industry, are not going to go quietly into the night. Remember, the NRA isn't the only trade group in the U.S. with a powerful lobby. CRON Stock and a Potential MergerIn recent weeks, Altria's been negotiating with Philip Morris International (NYSE:PM), the owners of the Marlboro brand outside the U.S., to reunite after 11 years as separate companies. Last October, before Altria bought up a big chunk of CRON stock, I suggested that Philip Morris should make a play for one of Canada's big cannabis companies. "The tobacco companies were born to manufacture and sell the various by-products of the cannabis plant which includes marijuana and hemp," I wrote at the time. "The fact that only now are they considering a move -- after legalization in Canada -- suggests they've been irreparably scarred by years of tobacco litigation."Cowen & Co. analyst Vivien Azer recently suggested that the crackdown on vaping flavoring might be the nudge CRON and MO needed to officially tie the knot. After an acquisition, CRON would be controlled by a company with $54.7 billion pf annual revenue and $14.3 billion in free cash flow, providing it with plenty of capital to fight any potential opposition to cannabis vaping in the future. Altria Has a Beverage UnitCronos isn't the only cannabis company with a big focus on vaping. Aurora Cannabis (NYSE:ACB) is focusing on vape pens and edibles while ignoring cannabis beverages.I believe that's a mistake. Perhaps not a lethal one, but a mistake nonetheless. The older people get, the less they want to be messing with their lungs,. That's why I think cannabis-infused drinks will win in the end. Altria, although not nearly as involved in the alcoholic beverages industry as it once was, still owns premium wine producer Ste Michelle Wine Estates. In addition, as a result of Anheuser-Busch's (NYSE:BUD) $100-billion acquisition of SABMiller in 2016, Altria owns 10% of BUD stock.It's hard to imagine Budweiser turning down an opportunity to partner with Atria and Cronos to produce cannabis-infused drinks on a global basis. As long as Altria continues to own a big chunk of Cronos Group stock, I don't think investors need to overreact to the latest health concerns surrounding vaping. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Big IPO Stocks From 2019 to Watch * 7 Discount Retail Stocks to Buy for a Recession * 7 Stocks to Buy Benefiting From Millennial Money The post 3 Reasons Altriaas Investment in Cronos Group Stock Is Positive for CRON appeared first on InvestorPlace.