Cronos Group Inc (NASDAQ: CRON) is having an incredibly strong start to the trading session this morning, following up on the strong gains we saw on the stock yesterday. If you’re looking for recent news released by the company, you’re not going to find any, but that doesn’t mean that there’s not a good reason for the gains. Today, we’ll talk about:
- Why CRON stock is headed up;
- what we’re seeing in the market; and
- what we’ll be watching for ahead.
Why CRON Is Headed For The Top
As mentioned above, Cronos is having a great start to the trading session this morning, following up on nearly 20% gains yesterday. With no news or SEC filings issued, many are wondering just why the stock is making a monumental run for the top. The reason is relatively simple.
CRON is a Canadian cannabis company, and there’s quite a bit going on in Canada at the moment. Months ago, Canada announced that it would be legalizing cannabis for adult recreational use starting tomorrow, Wednesday, October 17, 2018.
Since the announcement, cannabis companies in Canada have been scrambling to enter supply agreements in an attempt to supply what many believe will be a new, booming industry. CRON was one of the companies that was most successful in creating these agreements. Therefore, the company has a strong foundation in place for it to take advantage of this coming market. As a result, investors are excited for the revenue the company is likely to generate ahead.
What We’re Seeing From The Stock
As investors, one of the key lessons that we learn is to follow catalystic events. After all, when a catalyst takes place, it’s likely to move the market. With a catalyst just around the corner, investor excitement surrounding Cronos is very high, and these investors are showing their excitement through the gains that we’re seeing on the stock. Of course, our partners at Trade Ideas were the first to alert us to the movement. At the moment (7:34), CRON is trading at $12.86 per share after a gain of $1.12 per share or 9.54% 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 company through the legalization of cannabis in Canada to see the revenue the company generates in this newly minted industry. With a solid foundation of supply agreements in place, the company is well positioned to generate record revenues! Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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