Cronos Group Inc (NASDAQ: CRON) had a rough time in the market yesterday along with most cannabis stocks as profit taking hit the sector. However, we were out in front of the declines, letting our readers know that they represented an opportunity. Well, that opportunity is showing itself in the market today. Below, we’ll talk about:
- The opportunity surrounding CRON;
- what we’re seeing from the stock today; and
- what we’ll be watching for ahead.
CRON Is Presenting An Incredible Opportunity
As mentioned above, Cronos took a bit of a hit in the market yesterday. While plenty of pundants got into the frey saying that this would be the beginning of the cannabis stock run, we saw through it. It proved to be nothing more than profit taking as CRON and others in the sector started flying just after the closing bell. There’s good reason for it too.
Canada has announced that it would be the second nation to legalize cannabis for recreational use. As a result, CRON and others have been minting supply agreements with retail adult-use cannabis distributors to get their products on the shelves. Few have been quite as successful in the process as Cronos.
In fact, the company recently announced that it has signed supply agreements in four major provinces throughout canada. In fact, these provinces represent more than 50% of the country’s population. As such, the company is in a prime position to take advnatage of a market in its infancy.
What We’re Seeing From The Stock Today
As expected the declines that we saw from Cronos yesterday proved to be a short term issue. Today, investors are back to their excitement as gains continue. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (9:46), CRON is trading at $11.87 per share after a gain of $0.79 per share or 7.15% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the CNA Finance team will continue to keep a close eye on CRON. In particular, we’re interested in following the story surrounding the company’s continued work to spread its products through the opening recreational cannabis sector in Canada. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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