MJ - ETFMG Alternative Harvest ETF

NYSEArca - NYSEArca Delayed Price. Currency in USD
-0.62 (-4.31%)
At close: 4:00PM EDT

13.77 +0.01 (0.07%)
After hours: 7:28PM EDT

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Previous Close14.38
Bid13.68 x 1000
Ask14.05 x 900
Day's Range13.42 - 13.90
52 Week Range8.81 - 33.24
Avg. Volume850,654
Net Assets506.3M
PE Ratio (TTM)N/A
YTD Daily Total Return-15.34%
Beta (5Y Monthly)1.65
Expense Ratio (net)0.75%
Inception Date2015-12-03
  • MarketWatch

    UPDATE: Aurora Cannabis reiterated as buy at Ladenburg Thalmann after better-than-expected earnings

    Ladenburg Thalmann reiterated its buy rating on shares of Aurora Cannabis Inc. on Monday after the Canadian cannabis company posted better-than-expected earnings last week. Analyst Glenn Mattson lowered his stock price target to $18 from a split-adjusted $36. Aurora conducted a 12-for-1 reverse stock split last week, after a delisting threat from the New York Stock Exchange as the stock was trading below $1. Mattson said the company's $75.5 million fiscal third-quarter revenue was ahead of his $67.6 million forecast, while consumer cannabis revenue of $41.5 million beat his forecast of $36.6 million. Aurora has made strides in its reorganization plan announced in February, the analyst wrote, with the goal of reducing sales, general and admin costs and R&D costs to a run rate of $40 million to $45 million as it exits the fiscal fourth quarter. "We think ACB can become a solid cash flow generator simply from the Canadian operations and, with a strong market position in Canada, the company can create significant value from here based on this one market," Mattson wrote. We do think that it will look to expand into the U.S. but not until federal legality is more clear." Shares rose 59%, but remain down 31% in the year to date, while the ETFMG Alternative Harvest ETF has fallen 24% and the S&P 500 has fallen 9%.

  • MarketWatch

    UPDATE: Aurora Cannabis stock rockets 23% after earnings are 'encouraging for a change': Cantor Fitzgerald

    Aurora Cannabis Inc.'s fiscal third-quarter numbers showed "encouraging signs, for a change," according to Cantor Fitzgerald analyst Pablo Zuanic, who reiterated his overweight rating and C$22 ($16) stock price target in a Friday note. The Canadian company posted sales that were 13% above FactSet consensus, with recreational weed up 24% from the prior quarter, "and began to show cost and cashflow improvements that give credence to the notion of positive EBITDA by the Sep quarter and positive cash flow by late FY21," said the note. The company also said that a new $250 million equity facility was a "backstop" and won't be needed if targets are met. Aurora, with 1.2 times net debt to current sales, is not in the same league as Canopy Growth Corp. or Cronos Inc. , which have bigger backstops thanks to investments from Constellation Brands Inc. in Canopy's case, and Altria Inc. in Cronos' case, said Zuanic. "That is why, we believe, ACB trades at a third of those stocks on EV/current sales, despite having similar or better growth prospects. It is in the "levered league." That said, this is not a company going bust, and we see value," the analyst wrote. Jefferies analyst Owen Bennett said the numbers offered reasons to be optimistic, but said that sales were never the issue for Aurora, but rather its cost structure. "To this, although a headline EBITDA miss today, we think consensus will warm to Aurora's chances of hitting their +ve adj. EBITDA target, especially given commentary around further levers to pull," Bennett wrote in a note. "As before, all eyes remain on 1Q as the big catalyst." Bennett rates the stock as hold with a C$1.00 price target. Aurora's U.S.-listed shares were up 23% premarket but are down 74% in the year to date, while the ETFMG Alternative Harvest ETF has fallen 35% and the S&P 500 has fallen 12%.

  • MarketWatch

    Organigram to recall about 50 employees at Moncton, New Brunswick campus in Phase 1 of reopening

    Organigram Holdings Inc. said Thursday it is recalling abut 50 employees at its Moncton, New Brunswick campus in the first phase of reopening its cannabis business. "These employees will fill core roles across various departments that have been deemed highest priority by the Organigram leadership team in this initial phase," the Canadian company said in a statement. "Subsequent phases of this plan will be dependent upon public health and safety guidelines and the evolving needs of Organigram's business." Safety measures, including enhanced cleaning and hand sanitizing and social-distancing, will be implemented. U.S.-listed shares were not yet active premarket, but have fallen 52% in the year to date, while the ETFMG Alternative Harvest ETF has fallen 36% and the S&P 500 has fallen 13%.

  • Worst Performing ETFs 4Q 2019

    Worst Performing ETFs 4Q 2019

    Surprising losers in a stellar year for financial markets.

  • ETFMG Extends Sponsorship of UFC Veteran Heavyweight Alexey Oleynik
    PR Newswire

    ETFMG Extends Sponsorship of UFC Veteran Heavyweight Alexey Oleynik

    ETF Managers Group (ETFMG), an industry leader in bringing innovative thematic ETFs to market, has announced the extension of its headline-making partnership with powerhouse UFC heavyweight, Alexey Oleynik. The extension of this unique sponsorship comes ahead of Oleynik's upcoming fight in UFC's highly anticipated return to live television this Saturday, May 9, in Jacksonville, FL.

  • Investopedia

    Individual Investors Chase Blue Chips and Pot Stocks in Sell-off

    Individual investors chase blue chips and pot stocks amid sell-off despite historic market volatility and uncertainty.

  • Cannabis stocks slammed amid market sell off
    Yahoo Finance Video

    Cannabis stocks slammed amid market sell off

    Canopy Growth has announced its shutting down 2 of its facilities in British Columbia, resulting in layoffs for 500 employees. Yahoo Finance's Zack Guzman and Emily McCormick breakdown the latest cannabis news with Barron's reporter, Carleton English.

  • Bruce Linton on Tilray earnings, cannabis sector
    Yahoo Finance Video

    Bruce Linton on Tilray earnings, cannabis sector

    Vireo Health Executive Chairman and Former Canopy Growth Co-CEO Bruce Linton weighs in on the cannabis sector with Yahoo Finance's Zack Guzman & Heidi Chung on YFi PM.

  • Investopedia

    Cannabis Stocks Appear Ready to Test Recent Highs

    Here's why cannabis stocks may have bottomed out. Gain exposure through these two leading pot companies or a marijuana-themed ETF.

  • How legal weed disrupted this flower startup's supply chain
    Yahoo Finance

    How legal weed disrupted this flower startup's supply chain

    Christina Stembel clearly remembers the day after California legalized recreational marijuana.

  • Canopy Growth Stock Remains a Long-Term Buy Ahead of Earnings

    Canopy Growth Stock Remains a Long-Term Buy Ahead of Earnings

    Canopy Growth (NYSE:CGC) stock remains one of my top picks as a long-term winner in the cannabis space. But in the short term, Canopy and other cannabis stocks continue to struggle.Source: Shutterstock That's not terribly surprising. Recent fears of the coronavirus from China have rattled the markets. Before that, a slower-than-expected rollout of recreational products in Canada led to disappointing growth -- and a massive selloff in cannabis names.But even the recent volatility provides an opportunity. As regular readers of my Cannabis Cash Weekly know, we've been selling covered calls on CGC stock and other cannabis plays. Higher volatility means higher premiums -- and higher returns.InvestorPlace - Stock Market News, Stock Advice & Trading TipsNimble trading can create opportunities in almost any environment. With Canopy Growth earnings due on Friday morning, investors need to stay on their toes. Two Big Days for Cannabis StocksSince stabilizing in November, cannabis stocks have tried to rally. I use the ETFMG Alternative Harvest ETF (NYSEARCA:MJ) as a proxy for the sector. After bouncing in January, that exchange-traded fund once again is testing short-term support:Source: Provided by Finviz The ETF actually sits a few pennies below November lows. That's not enough to predict another leg down for the sector -- yet. But certainly sentiment toward the sector remains bearish. * 7 U.S. Stocks to Buy on Coronavirus Weakness Two industry leaders have a chance to reverse that sentiment this week. Aurora Cannabis (NYSE:ACB) reports earnings on Thursday morning, and Canopy the following day.It remains to be seen whether the two companies finally can drive optimism toward the sector. "Cannabis 2.0" products in Canada represent a significant growth opportunity, and should contribute modestly to fourth-quarter results. Earnings reports last month from Aphria (NYSE:APHA) and OrganiGram (NASDAQ:OGI) led the sector to bounce. There's hope for a repeat this week and next.But there are reasons for caution as well. Aurora has laid off workers. Canopy announced that its cannabis-infused beverages would be late to market. Neither move suggests blowout earnings are on the way. And so investors waiting for a big rally in cannabis names may have to wait a little longer. The Long-Term Case for CGC StockOf course, that's not a bad thing. My longer-term outlook toward cannabis is extremely bullish. But investors need to pay attention to short-term factors as well -- and capitalize on them.So we've looked to sell covered calls on CGC stock. The strategy results in either positive short-term gains if the stocks are called away, or a reduced cost basis if they're not.Covered calls allow investors to play the short-term trading we've seen in recent months while maintaining flexibility toward the long-term opportunity. And from a long-term standpoint, Canopy Growth remains the stock to own.The multi-billion dollar investment from Constellation Brands (NYSE:STZ, NYSE:STZ.B) gives Canopy a sizable war chest. It's also allowed Canopy to develop a vertically integrated model that spans everything from production to retail.Brands like Tweed and Tokyo Smoke will drive consumer sales with higher profit margins. Spectrum Therapeutics offers exposure to worldwide growth in medicinal marijuana.Simply put, Canopy Growth is the industry leader in an industry that will, over the long term, grow exponentially. Investors can't ask for anything more.Matthew McCall left Wall Street to actually help investors -- by getting them into the world's biggest, most revolutionary trends BEFORE anyone else. The power of being "first" gave Matt's readers the chance to bank +2,438% in Stamps.com (STMP), +1,523% in Ulta Beauty (ULTA) and +1,044% in Tesla (TSLA), just to name a few. Click here to see what Matt has up his sleeve now. Matt does not directly own the aforementioned securities. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 7 U.S. Stocks to Buy on Coronavirus Weakness * 7 Smart Blue-Chip Stocks to Buy Now * 7 Low-Volatility Stocks to Buy In Jittery Times The post Canopy Growth Stock Remains a Long-Term Buy Ahead of Earnings appeared first on InvestorPlace.

  • ETF Trends

    Marijuana ETFs Get Smoked After Major Shakeup in Aurora Cannabis

    Marijuana ETFs lagged the broader market Friday after Aurora Cannabis (NYSE: ACB) plunged on a spate of bad news from an exiting co-founder and chief executive, among others. Among the worst performing ...

  • Benzinga

    New Hampshire Cannabis Home Cultivation Bill Passes Senate Vote

    The New Hampshire Senate approved the passage of a bill that could make it legal for medical cannabis patients and their caregivers to grow cannabis at home. What Is SB 420? The state already runs a medical cannabis program that went live in 2013 and has over 8,000 participants. If the Bill is signed by the Governor, it will allow each patient to possess three mature plants, three immature plants, and 12 seedlings.

  • Benzinga

    Willie Nelson Is The Hero That The Cannabis Industry Needs

    When acclaimed country musician Willie Nelson achieved commercial success in the 1970s, he was already in his late thirties. Willie had been making music for over 30 years without any significant hits, and by 1970 his career was at a downfall.

  • Benzinga

    Benzinga Cannabis Managing Director Javier Hasse To Speak At CanEx Investment Summit In NY, Feb 18

    Benzinga Cannabis Managing Director Javier Hasse is going on a speaking tour once again in 2020, with confirmed spots at big events including SXSW in Austin, Texas; the Benzinga Cannabis Capital Conference ...

  • Benzinga

    Davos 2020 Cannabis Conclave: Uncovering The Future Of The European Market

    Medical cannabis in Europe has slowly been gaining traction, but there are still a number of hurdles around regulation that has a lot of catching up to do. Speaking at the Cannabis Conclave event in Davos, Switzerland last week, Stephen Murphy of Prohibition Partners discussed medical cannabis policy and the importance of knowledge sharing across the continent. Murphy said big brands have yet to enter the cannabis market, so less competition exists compared to other industries.

  • Market Exclusive

    Market Morning: Biden v Facebook, Idahoans Splurge in Oregon, BoJo Threatens the Axe,

    Biden Can’t Abide Facebook Joe Biden is going after Facebook (NASDAQ:FB). He wants to get rid of a law that protects Facebook and other social media sites from liability for posts by its users. This would mean that Facebook could potentially be sued by anyone who claims that a post on Facebook caused or was […]The post Market Morning: Biden v Facebook, Idahoans Splurge in Oregon, BoJo Threatens the Axe, appeared first on Market Exclusive.

  • Cannabis magazine High Times to open retail stores this year
    Yahoo Finance

    Cannabis magazine High Times to open retail stores this year

    The 45-year old marijuana advocacy publication will be getting into the cannabis retail business.

  • 4 Marijuana Stocks to Buy for the Big 2020 Rebound

    4 Marijuana Stocks to Buy for the Big 2020 Rebound

    You hear that? That's the sound of the beginning of a big rebound in marijuana stocks. Year-to-date, the ETFMG Alternative Harvest ETF (NYSEARCA:MJ) is already up almost 10% -- and we are less than three weeks into the year. That's a huge gain in a short amount of time.The big rebound in pot stocks can be attributed to favorable fundamental developments (multiple cannabis companies have reported strong fourth quarter numbers in early January), favorable legal developments (among other things, Illinois just legalized recreational marijuana), and a whole bunch of investors deciding that with the new year, comes new opportunity.That's the good news for cannabis bulls. The better news? This big rebound in marijuana stocks is just getting started.InvestorPlace - Stock Market News, Stock Advice & Trading TipsOver the next several quarters, everything is going to improve for the cannabis sector. Demand trends will re-accelerate thanks to new vapes and edibles products, as well as retail footprint expansion. Supply overhang issues will ease with rebounding demand. International markets will start to take off as governments around the world follow in Canada's footsteps. Revenue growth trends will improve. Margins will bounce back. Losses will narrow.All in all, things will just get better for the cannabis sector in 2020, and as they do, depressed and beaten-up pot stocks will rebound. * The Top 5 Dow Jones Stocks to Buy for 2020 With that in mind, let's take a deeper look at four marijuana stocks to buy for the big 2020 rebound. Canopy Growth (CGC)Source: Shutterstock The cannabis market's biggest and most important company, Canopy Growth (NYSE:CGC), has been leading the pot stock rebound in 2020 so far. Year-to-date, CGC stock is up more than 15%.Canopy will continue to be a leader in this rebound for the rest of 2020 for one very simple reason: this is the best cannabis company out there by a mile.They have the biggest balance sheet -- thanks to a multi-billion dollar investment from Constellation Brands (NYSE:STZ) -- with the most resources and firepower to invest in things like product development, international expansion, strategic acquisitions, and production build-out. They also have the biggest sales base, the most production capacity, and the widest global distribution network.The management team is arguably the best in the business, as Constellation has infused the company with experienced talent. They also have the most visible pathway to dominating the ultra-valuable U.S. market, thanks to a planned acquisition of U.S. cannabis company Acreage.All in all, Canopy Growth has significantly differentiated itself from the pack in the cannabis world. As the leader, if pot stocks keep rebounding throughout the rest of the year, CGC stock will lead that rebound. Cronos (CRON)Source: Shutterstock The only other "high quality" cannabis company that has won the multi-billion dollar support of a consumer staples giant is Cronos (NASDAQ:CRON). This unique feature should propel meaningful out-performance in CRON stock in 2020.Cannabis market trends will rebound in 2020 thanks to new products, retail footprint expansion, favorable legislative progress, and international growth, among other things. As those trends rebound, investors will rush back into the marijuana industry like its early 2019 all over again.When investors flocked into the space back then, they did most of that flocking into two names -- Canopy and Cronos -- because those were the smartest and safest investments given their fortified balance sheets, huge investment capability, and tremendous financial support. Of note, Cronos stock outperformed Canopy stock in the first three months of 2019 by a tally of 80% to 60%, mostly thanks to the fact that CRON stock was cheaper than CGC stock (15-times one-year forward sales for CRON, versus 30-times for CGC at the beginning of 2019). * 10 Cheap Stocks to Buy Under $10 In 2020, the same dynamic will repeat. Investors will rush back into the space amid improving fundamentals and trends. They will specifically rush back into the smartest and safest investments in the space, CRON and CGC. And CRON will be the bigger winner, because CRON stock (9-times one-year forward sales) remains way cheaper than CGC stock (14-times one-year forward sales). Aphria (APHA)Although most pot stocks are up big in early 2020, shares of cannabis producer Aphria (NYSE:APHA) are not, mostly because the company reported second quarter numbers in January that missed across the board. Revenues missed estimates, as did profits. And management dramatically cut its full-year guide.Consequently, APHA stock is actually down 1% in 2020, while many of its marijuana peers are up 10% or more.This weakness won't last. It's a gross overreaction to a few headline second quarter misses. Underneath those misses, the numbers were actually pretty good. Revenue growth accelerated sequentially, from up 8% quarter-over-quarter in Q1 to up 9% quarter-over-quarter in Q2. Volume growth also accelerated, and by way more, going from 7% growth in Q2, to 18% growth in Q2. Gross margins reversed course, after dropping from 53% in Q4 to 50% in Q1, and shot back up to 57% in Q2. At the same, Aphria reported a huge sequential increase in adjusted EBITDA after a sequential drop in Q1.In other words, all of the company's important underlying trends improved meaningfully in the second quarter. Revenue, volume, margin, and profit trends all got better.And that's before the launch of new vapes and edibles products. As such, the numbers will only get better in the third and fourth quarters. As they keep improving, investors will push APHA stock way higher, especially considering its relatively depressed valuation base (2-times one-year forward sales). Aurora (ACB)Source: Shutterstock Last, but not least, on this list of marijuana stocks to buy for the big rebound in 2020 is Aurora (NYSE:ACB).Aurora has long been the second-biggest player in the Canadian cannabis market, coming in right behind Canopy in terms of sales, volume, and production capacity. But investors have increasingly expressed concerns over the company's balance sheet and liquidity, as Aurora features one of the worst balance sheets in the cannabis sector and has a major cash burn problem.Ultimately, these concerns have kept ACB stock depressed. These concerns could ease dramatically in 2020. Aurora will launch of suite of edibles and vapes products over the coming months. They should also be opening a ton of new stores.This combination will reignite demand trends at Aurora, and revenue growth rates should start improving. As they do, more favorable supply-demand dynamics will push up margins. Bigger revenues plus bigger margins equals smaller losses. Smaller losses mean less cash burn.As cash burn becomes less of a problem in 2020 (and as the company's improved revenue growth trajectory illuminates a more visible pathway towards profitability), investors will become less concerned about the company's balance sheet and liquidity. The more those concerns fade, the more ACB stock will rally.As of this writing, Luke Lango was long CGC. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The Top 5 Dow Jones Stocks to Buy for 2020 * 7 Fintech ETFs to Buy Now for Fabulous Financial Exposure * 3 Tech Stocks to Play Ahead of Earnings The post 4 Marijuana Stocks to Buy for the Big 2020 Rebound appeared first on InvestorPlace.

  • Here’s How Aphria Stock Could Double in 2020

    Here’s How Aphria Stock Could Double in 2020

    Following a disastrous performance in 2019, marijuana stocks are staging a huge comeback in early 2020. So far this year, the ETFMG Alternative Harvest ETF (NYSEARCA:MJ) is already up about 10%, representing an impressive average gain per trading day of nearly 1%.Leading the charge are the usual suspects. So far this month, Canopy Growth (NYSE:CGC) is up 15%. Tilray (NASDAQ:TLRY) has gained 19%. and Cronos (NASDAQ:CRON) has added 6%.But one marijuana stock missing out on this party is Aphria (NYSE:APHA). Best known as the only cannabis company to report a quarterly profit so far, APHA has not rebounded with its peers in 2020. Instead, Aphria stock is flat in 2020.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThis relative underperformance of APHA stock won't last.Aphria's trends are too favorable, its fundamentals too good, and its valuation too discounted to keep Aphria stock depressed for much longer. As marijuana stocks continue to rebound throughout 2020 amid favorable cannabis trends, Aphria stock will turn into the one of the segment's hottest stocks. Indeed, my estimates indicate that Aphria stock could more than double this year.Here's how that could happen. Marijuana Stocks Will Keep ReboundingCentral to the bull thesis on APHA stock is the idea that the entire cannabis sector will rebound dramatically in 2020.Three positive catalysts will drive that rebound. First, the currently depressed demand trends of Canada's legal cannabis market will improve significantly in 2020. The factors that will bring about its improvement are the introduction of new edibles and vape products, more aggressive launches of new stores, and logistical improvements by legal suppliers and distributors. The demand rebound will turn falling revenue growth rates across the whole industry into rising revenue growth rates. * The Top 5 Dow Jones Stocks to Buy for 2020 Second, the supply glut of Canada's legal market will ease due to accelerating demand trends. Economics 101 teaches that falling supply and rising demand lead to higher prices. Higher prices create higher margins. Consequently, the cannabis industry's margin weakness of 2019 could turn into margin strength in 2020.Third, various cannabis markets outside of Canada will gain traction and turn into meaningful revenue contributors for legal suppliers. That is, governments around the world will adopt more lenient marijuana laws, thanks to increasing pressure by consumers for such laws. As that happens, more countries will legalize cannabis in 2020. At the same time, more and more states across the U.S. will legalize marijuana, and more and more Canadian cannabis companies will jump into the U.S. market.The marijuana industry seems optimally positioned for a huge rebound in 2020, meaning that the recent strength of the sector's stocks will most likely persist. Aphria Stock Will Join The RallyAphria stock is currently sitting out the big rally by cannabis stocks. That won't last forever. Soon enough, Aphria will join the rally, and when it does, Aphria stock could explode higher.Investors have been relatively bearish on Aphria recently because the company's second-quarter earnings report, delivered in early January, missed analysts' average expectations, and the company, in conjunction with the results, cut its full-year revenue and profit guidance. But the miss doesn't tell the whole story.Aphria's trends are actually pretty good. Its quarter-over-quarter cannabis revenue growth and its QoQ cannabis volume growth accelerated compared with Q1's rates. Those two data points imply that demand for Aphria's cannabis is rising. At the same time, its cannabis gross margins improved tremendously, rising from 50% in Q1 to 57% in Q2. The data supports the idea that improving supply-demand dynamics are meaningfully lifting Aphria's margins.Aphria has all the momentum it needs to join the marijuana stock rally, as demand for its products is accelerating and its margins are expanding.Eventually, these improving growth trends, combined with the massively discounted valuation of APHA stock, will produce an epic rally by the shares.Analysts, on average, expect Aphria's fiscal 2022 earnings per share to be 40 cents. That estimate will prove to be conservative. My modeling indicates that improving demand and margin drivers will push the company's FY22 EPS to 50 cents or higher. Based on a forward earnings multiple of 20, which is average for growth stocks, my 2021 price target for Aphria stock is $10.The shares closed at $5.19 yesterday. The Bottom Line on APHA StockAphria stock has sat out the 2020 marijuana stock rally so far, but it won't remain on the sidelines forever. Instead, as soon as worries about the Q2 earnings report fade, the shares will start to climb higher. Given how cheap this stock is and how good APHA's fundamentals are, the rally will be huge and could reach 100%.As of this writing, Luke Lango was long CGC. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The Top 5 Dow Jones Stocks to Buy for 2020 * 7 Fintech ETFs to Buy Now for Fabulous Financial Exposure * 3 Tech Stocks to Play Ahead of Earnings The post Here's How Aphria Stock Could Double in 2020 appeared first on InvestorPlace.

  • CRON Stock Could Ride the Cannabis Resurgence into a Year-Long Rally

    CRON Stock Could Ride the Cannabis Resurgence into a Year-Long Rally

    Cronos (NASDAQ:CRON), the cannabis company best known for its multi-billion investment from Marlboro maker Altria (NYSE:MO) already is having a good year. Year-to-date, CRON stock is up more than 10%.Source: Shutterstock But Cronos is not alone. Pot stocks are bouncing back in 2020, with the ETFMG Alternative Harvest ETF (NYSEARCA:MJ) up more than 10% already through the first two weeks of the year amid favorable fundamental developments (a handful of marijuana companies reported strong numbers in early 2020) and legal developments (among other things, Illinois just legalized recreational marijuana).Here's my two cents: early 2020 strength in CRON stock will extend into a year-long rally for the resurgent pot stock.InvestorPlace - Stock Market News, Stock Advice & Trading TipsMy rationale is simple. The whole cannabis sector will bounce back in 2020. As it does, Cronos will bounce back even more, because it represents one of the two highest quality investments in the space, and quality will become of increasing importance in this space as a clear divergence emerges between cannabis winners and cannabis losers.Net net, Cronos looks good in 2020. I think shares will head materially higher. Here's a deeper look at why. The Pot Stock Rebound Is for RealThe big rebound in pot stocks is more than a head-fake or dead-cat bounce. It's the real deal, and the start of something much bigger. * The Top 5 Dow Jones Stocks to Buy for 2020 The legal cannabis market will inevitably be huge. Drug usage data among U.S. high school students shows a clear trend: young consumers are increasingly smoking weed, and today, they smoke weed almost as much as they drink alcohol.The demand is there. The supply will get there, too, because consumer and government attitudes are rapidly shifting in favor of legalizing cannabis. Big demand plus big supply equals big market.How big? Well, if you consider that the global alcoholic beverage market is in the $1 trillion-plus range and that cannabis consumption among certain demographics is nearly equal to that of alcohol consumption, it's pretty easy to see the fully-legal global cannabis market measuring in the several hundred billion dollar range one day.Outside of Canopy Growth (NYSE:CGC), all publicly traded cannabis companies feature sub-$3 billion market caps.Clearly, these companies aren't priced appropriately. They aren't priced appropriately because investors got overly bearish in 2019 amid early challenges in Canada, the U.S. and elsewhere, and thought that these challenges would last forever.They won't. In 2020, they will fade. Demand trends will improve. Logistics will improve. Retail distribution will expand. Legislation will move forward. Everything will get better because everything is always better in Year 2 than in Year 1.Pot stocks will bounce back. And they will hold onto these gains, because the cannabis market will only get bigger and better over the next few years as it marches towards its several hundred billion dollar potential. Cronos Is a High-Quality PickIn the cannabis space, Cronos stock is a high-quality pick, and that's important because quality will be a key differentiation going forward.There are a lot of cannabis companies out there. Not all of them will survive. When you look at the alcoholic beverage and tobacco industries, the two best comps for the cannabis industry, those markets are essentially oligopolies, dominated by only a handful of conglomerates.The cannabis market will pan out no differently. It will go from hundreds of equally-sized players today, to a handful of super-sized players in a decade. This market consolidation means that while the cannabis market will grow by leaps and bounds over the next several years, this rising tide won't lift all boats; high-quality boats will rise a bunch, and low-quality boats will fall by the wayside.Cronos is unequivocally one of the high-quality boats in this space for one big reason: the multi-billion dollar investment Altria poured into the company.That huge investment is a vote of confidence from a seasoned and smart management team over at Altria. It's also enough money to shore up the balance sheet for the foreseeable future, absorb cash burn, and ease pressure on the company to cut corners to turn a profit.Most importantly, it gives Cronos ample resources to invest in the cannabis space over the next several years. Only Canopy can rival Cronos in terms of this investment firepower.Ultimately, then, CRON is one of the top two highest quality picks in the cannabis space. Thus, as pot stocks begin their multi-year rebound in 2020, Cronos will be at the epicenter of this rebound. Bottom Line on CRON StockIn a nutshell, what you have with Cronos is a sub-$3 billion company with a very reasonable opportunity to be one of the largest players in a potential several hundred billion global cannabis industry one day. That's a compelling long-term value prop.The market turned a blind eye towards this long-term value prop in 2019 amid near-term cannabis market challenges. In 2020, those challenges will fade from the scene. As they do, investors will increasingly adopt the long-term bull thesis as a consensus thesis. The more this happens, the more CRON stock will rebound.As of this writing, Luke Lango was long CGC. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * The Top 5 Dow Jones Stocks to Buy for 2020 * 7 Fintech ETFs to Buy Now for Fabulous Financial Exposure * 3 Tech Stocks to Play Ahead of Earnings The post CRON Stock Could Ride the Cannabis Resurgence into a Year-Long Rally appeared first on InvestorPlace.

  • Cannabis ETFs Are Soaring in 2020: Will the Trend Continue?

    Cannabis ETFs Are Soaring in 2020: Will the Trend Continue?

    With a greater legislative push to legalize recreational marijuana, cannabis ETFs are soaring to start the year and are likely to continue doing so.

  • ETF Trends

    Cannabis ETFs Pop Off on Stellar Organigram Quarterly Report

    ETFs that track the budding cannabis industry led the charge on Wednesday as Organigram (NasdaqGS: OGI) surged on first-quarter revenue that more than doubled expectations. Among the best performing non-leveraged ...

  • ETF Trends

    State of Illinois Starts 2020 With First Recreational Marijuana Sales

    June 2019 saw Illinois become the 11th state to legalize the sale/purchase of marijuana, and it rang in the new year with its first recreational marijuana sales. Chicago-based Cresco Labs, a cannabis company, purportedly spent weeks training over 500 employees in Illinois on educating new marijuana users prior to the first of the new year. “The level of excitement has far outweighed the launch of an iPhone or new pair of Jordan [shoes],” Cresco Labs spokesman Jason Erkes told CNBC.

  • Best & Worst ETF Zones of 2019

    Best & Worst ETF Zones of 2019

    Inside the best and worst ETFs of 2019.