|Bid||20.01 x 0|
|Ask||20.15 x 0|
|Day's Range||19.90 - 20.69|
|52 Week Range||7.33 - 32.95|
|Beta (3Y Monthly)||4.70|
|PE Ratio (TTM)||36.10|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||14.52|
It's been a long, strange trip for pot stocks, and it could get stranger. Here's all you need to know about the marijuana industry and the major players in it.
The Wisconsin Retirement System, one of only two fully funded state pensions, also slashed its holdings in PG&E, the struggling California utility, last quarter.
With all of the promises of the global cannabis market, some of the Canadian companies like Cronos Group (CRON) have failed to launch. The cannabis company reported Q1 results that were so underwhelming that one has to question why the market valuation got so high when the Cronos stock hit $25 a few months back.Failure To Launch For Q1, Cronos Group reported net revenues only reached C$6.5 million, up slightly from C$5.6 million in the prior quarter. Nearly six months after the legalization of adult-use cannabis in their home market of Canada and business hasn’t gone very far.In the quarter, kilograms sold were a meager 1,111 and only increased slightly in the quarter. Some competitors are selling 7,000 to 10,000 kg per quarter with the goal of increasing supply to 25,000 kg in the current June quarter. Cronos Group didn’t see a material change to finished inventory going into Q2 and doesn’t predict much revenue growth for yet another quarter.About the only thing that really increased in a meaningful way was the cash balance. The company closed the Altria Group (MO) investment of C$2.4 billion leaving the Cronos Group with a massive cash balance to invest in the sector. Cronos Group still only has access to 5 provinces in Canada with coverage of only 58% of the Canadian population while working on obtaining licenses in Columbia via NatuEra and exporting medical cannabis from a joint venture in Israel.The company now generates a sizable C$8.9 million quarterly EBITDA loss and has accumulated a C$18.9 EBITDA loss since the adult-use market opened up in Canada. Not exactly the boom times expected when the market valuation reached $7.5 billion based on a fully diluted share count of 300 million now after the Altria Group investment.Wrong FocusCEO Mike Gorenstein mentions on the earnings call that the company dedicated a lot of time and effort into closing the strategic transaction from Altria. The numbers show that Cronos Group would’ve been a better company, if management had not chosen the path of listing on the NASDAQ and taking on a strategic investors.The U.S cannabis market was open for the taking and plenty of the multi-state operators (MSOs) in the U.S. are building businesses now generating hundreds of millions in annual revenues. While others were busy executing a business strategy and successfully navigating a difficult regulatory landscape, Cronos Group appears to now lean on Altria that isn’t even actively in the cannabis sector.TakeawayThe key investor takeaway is that investors need to see Cronos Group wisely spend this war chest of cash from the Altria investment. Despite the mounting stock weakness, Cronos Group still has a market valuation of over $4 billion.In general, the company has failed to launch during this land grab period in North America and the stock is still far too expensive until the company makes actual business moves surrounding cultivation and production of CBD and marijuana that leads to actual sales expansion. The focus on building design labs and obtaining strategic investments don’t actually lead to actual immediate business while the market is growing substantially.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here. Read more on CRON: * Cronos Stock Isn’t Ready for Prime Time Just Yet * Cronos (CRON) Stock Still Worth $30, Analyst Says * Is This Cannabis Stock in Trouble? Jefferies Stays Bearish on Cronos More recent articles from Smarter Analyst: * Gene Munster: Key Takeaways From Nvidia (NVDA) Earnings * Trade War? Top Analyst Says Alibaba (BABA) Stock Still a Buy * The Green Organic Dutchman (TGODF) Stock -- Not Sinking Exactly, But Not Sailing Anywhere Fast * Is Boeing (BA) Stock a Buy Ahead of FAA Announcement?
Are marijuana stocks on U.S. exchanges a good buy now? The marijuana industry gets a lot of hype, but look past the smoke and analyze pot stocks on their fundamentals and technicals.
Wall Street has handed out not one, two, or three... but seven price-target cuts to this marijuana stock since the month began.
Last week, Cronos (CRON) reported earnings for Q1’19, which just like previous earnings, were not received well by the market. With CRON now down about 35% from highs in early March, investors might be asking if it is worth holding the bag on CRON. The answer is no.Cronos’s Q1’19 net revenues of C$6.5M represented a mere C$0.9M increase from the quarter prior (C$5.6M for Q4’18). Neither the amount of revenues reported by CRON nor the quarter-over-quarter growth provide any justification for the current enterprise value of approximately C$4B. While CRON’s cash of C$2.4B brought in via the Altria investment provide the company with plenty of ability to expand, the management team at Cronos don’t appear to be taking advantage of that possibility.Cronos Continues to Botch the Launch of Recreational CannabisCronos’s MD&A from Q3’18 noted that it was selling its recreational cannabis products to cannabis control authorities in Ontario, British Columbia, Nova Scotia and Prince Edward Island. Heading into Q4’18 and the legalization of recreational cannabis this seemed pretty poor coverage of Canada relative to its peers like Canopy Growth Corporation (CGC), Aurora Cannabis (ACB), Tilray (TLRY) and Aphria (APHA).Cronos had another quarter to get things right, however, it did miss out on the launch of recreational cannabis. Unfortunately, with regards to selling recreational cannabis products, the addition of sales to private retailers in Saskatchewan was the only update to the MD&A for Q4’18. Unsurprisingly, this corresponded to only minimal revenue growth (C$0.9M) for Q1’19.With Q1’19 Cronos had yet another chance to get things right and ink supply agreements regarding its recreational cannabis products with new provinces. Alarmingly, Cronos doesn’t even appear to have a modest update on this front, the MD&A for Q1’19 doesn’t note any new territories or provinces where the company is selling its recreational cannabis products. What do investors think Q2’19 revenues will look like based on this? Cronos still does not appear to be in the two provinces where retail sales of recreational cannabis are now highest, Alberta and Quebec.Revenues from Israel Aren’t Close EnoughA substantial amount of excitement surrounds Cronos’s operations in Israel. Cronos Israel is actually a joint venture, it isn’t wholly-owned. Cronos is however entitled to 90% of the net income from Cronos Israel, but it doesn’t appear that sizable revenues are set to come from that venture in Q2’19. The Q1’19 MD&A notes that construction of a 45,000 square foot greenhouse which represents the first phase in Cronos Israel’s expansion is only set to complete in the first half of 2019. Indeed, this construction did not appear to be complete at the time of Q1’19 earnings this May. It seems highly improbable that cultivation could commence in time to produce any meaningful amount of crop for processing and sale in the remainder of Q2’19. Further, Cronos notes that while it does plan to export medical cannabis products from Cronos Israel, this is subject to obtaining all the necessary licenses and permits, something that also does not yet appear to have occurred.Bottom LineWith lackluster sales casting a shadow over the cannabis business, Cronos stock has struggled recently. While the company still has potential in the future, it seems Q2’19 will look a lot like Q1’19 and Q4’18 -- two performances the market did not applaud. It seems unwise to hang around for a third performance.To read more on the nitty gritty of what’s going on in the rising cannabis industry, click here. Read more: Cronos Stock Still Looks Overvalued More recent articles from Smarter Analyst: * Gene Munster: Key Takeaways From Nvidia (NVDA) Earnings * Trade War? Top Analyst Says Alibaba (BABA) Stock Still a Buy * The Green Organic Dutchman (TGODF) Stock -- Not Sinking Exactly, But Not Sailing Anywhere Fast * Is Boeing (BA) Stock a Buy Ahead of FAA Announcement?
The advocacy group Smart Approaches to Marijuana (SAM) is pushing for a middle road approach, aiming for decriminalization without risking any unintended consequences of full legalization.
MediPharm Labs Corp. (TSXV: LABS)(OTC: MEDIF ) has agreed to a multi-year supply deal with Cronos Group Inc. (NASDAQ: CRON ). What To Know Per the deal, MediPharm will supply Cronos Group's wholly-owned ...
MediPharm will supply Cronos with about $30 million of high-quality private label cannabis concentrate over the next 18 months. Cronos will also use MediPharm Labs' extraction facility in Ontario to fulfill certain processing needs under a separate agreement. "As the industry develops and matures, we see opportunity to work with companies like MediPharm Labs that provide specialized, high-quality services and inputs for our products," said Mike Gorenstein, CEO of Cronos Group.
MediPharm Labs Corp. (LABS.V) (MEDIF) (“MediPharm Labs”) a leader in specialized, research-driven cannabis extraction and cannabinoid isolation, is pleased to announce that it has entered into a multi-year supply agreement with Cronos Group Inc. (CRON) (CRON) (“Cronos Group”). MediPharm Labs will supply Cronos Group with approximately $30 million of high-quality private label cannabis concentrate over 18-months, and, subject to certain renewal and purchase options, potentially up to $60 million over 24-months. In addition, Cronos Group has selected MediPharm Labs’ state of the art extraction facility in Barrie, Ontario, as a preferred partner to fulfill certain of its processing needs, under a separate tolling arrangement.
Cronos Group Inc. (CRON.TO) (CRON.TO) (“Cronos Group” or the “Company”), is pleased to announce that it has entered into a multi-year supply agreement with MediPharm Labs Corp. (LABS.V) (MEDIF) (“MediPharm Labs”). MediPharm Labs will supply Cronos Group with approximately $30 million of high-quality private label cannabis concentrate over 18-months, and, subject to certain renewal and purchase options, potentially up to $60 million over 24-months.
Cannabis cultivation requires enormous amounts of energy, and water, and the companies that employ smart solutions are now pulling ahead in the highly competitive cannabis boom
The Market Is Sinking and Taking the Cannabis Sector Along(Continued from Prior Part)Cronos declinesCronos Group (CRON) underwent a deep selloff after it reported its earnings last week, and it lost another 7% during the day. See Cronos Group:
Cannabis Sector Fell on CRON's Earnings and Trade TensionsCannabis sector last week Last week was lackluster for the cannabis sector, and most of the stocks in the sector ended in the negative territory.
Aurora is taking the road less traveled in finding a partner outside of the cannabis industry. But could the road be dead-end?
The cannabis world had an unlikely protagonist: magic mushrooms . After a popular vote, the city of Denver, Colorado, known as a legal cannabis trailblazer, approved a ballot measure to decriminalize psychedelic ...
Women in the cannabis industry use various tactics to counter the stigma of working in the nascent field.