Cronos Group Inc (NASDAQ: CRON) is flying early on in the trading session this morning. However, if you look into press releases, you’ll see that the company hasn’t announced any news today. So, what’s the deal? It seems as though excitement is taking over in the cannabis industry as all big stocks in the sector seem to be flying. Today, we’ll talk about:
- Why investors are so excited about the cannabis sector;
- what we’re seeing from CRON stock today; and
- what we’ll be watching for ahead.
Why The Cannabis Sector Is Flying
As mentioned above, Cronos Group is having a great start to the trading session this morning. However, it’s not the only company in its sector seeing gains. In fact, all of the big players in the Canadian space seem to be climbing today. So, what’s the deal?
The answer is a simple one. In less than a month, recreational cannabis will become legal for adult use in Canada. Cronos, along with other big players like Tilray (TLRY) and Canopy Growth (CGC) have been working to cement their places within the industry, doing so through the procurement of supply agreements that will put their products in front of their target audience.
CRON is one of the company’s that is leading this charge, and investors know that all of the work the company has put in will pay off soo. So, as we get closer and closer to the big legalization date, October 17, 2018, investors are getting more and more excited, sending the stock on a run for the top.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to dig into the market is that the news leads to moves. In the case of Cronos, the news has been positive as of late. While nothing was released today, the company has entered into several supply agreements and is getting ready to take its slice of the Canadian recreational cannabis market. So, it comes as no surprise to see that excited investors are sending the stock on a run for the top. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (10:22), CRON is trading at $12.95 per share after a gain of $1.39 per share or 12.02% 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 as the it continues to cement its position and hopes to take a leadership role in the Canadian recreational cannabis market. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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