Cronos Group (CRON) Stock: Should You Dive In?

Cronos Group Inc (NASDAQ: CRON) is getting a lot of attention in media this morning, and for good reason. The stock is making a run, and it doesn’t look like it’s going to slow any time soon.

However, there hasn’t been any news released by the company today, leaving many scratching their heads as they try to figure out the reason for the gains. Nonetheless, investors know that single-session gains are relatively meaningless. The key is the long run. Today, we’ll talk about:

  • Whether CRON stock is a good one to consider or not;
  • what we’re seeing from the stock today; and
  • what we’ll be watching for ahead.

CRON Stock Is One To Consider Buying

As mentioned above, Cronos is running in the market today, but there’s no real catalyst out there to pin down. Nonetheless, I do believe that the stock is worth considering as a long-term investment opportunity.

In my opinion, the big play in cannabis is to invest in building out capabilities to grow more product, finding strong partners, and making moves to set the stage for strong global growth. In my opinion, CRON is doing all of these things.

From a growth perspective, the company is currently sitting at number two in terms of growing capacity, just behind Aurora Cannabis (ACB). This positions the company well to take advantage of the continued growth in consumer cannabis demand.

As far as partnerships go, Cronos closed a massive one with Altria Group. The company received a $1.8 billion investment from Altria earlier this month, creating a partnership with one of the world’s largest tobacco companies.

The partnership is important for multiple reasons. Among them, the partnership drives more funding into CRON, allowing it to build out more capacity. Moreover, Altria is a great partner as it has navigated the complex, highly regulated, tobacco market, making a brand that is hard to ignore. Having a team like this on your side as cannabis markets begin to emerge around the world is a strong play.

On a global scale, CRON has been working hard. In fact, I would venture to say that when it comes to capacity and partnerships, the company is in the top 3 on both. When it comes to global footprint, it is in the top 5.

Considering the moves that the company has made leading up to the emergence of the Canadian cannabis market and United States CBD market, I believe that the company is well positioned to take advantage of both of these. Moreover, with a strong global footprint, as regulations change around the world, more opportunities will arise for the company and its investors.

What We’re seeing From The Stock 

While Cronos hasn’t released any news today, the company is in headlines and it is running on high volume. As is normally the case, our partners at Trade Ideas were the first to alert us to the movement. Currently (11:01), CRON is trading at $20.78 per share after a gain of $1.55 per share or 8.06% 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 expand its growing capacity and global footprint, providing value to investors. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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