Cronos Group Inc (NASDAQ: CRON) is a stock that has garnered quite a bit of attention as of late, and for good reason. Pot stocks have been on a rebound and in many of the trading sessions, the stock has been leading the charge. So, why is this a favorite among cannabis investors and where will the company be in the long run? Today, we’ll talk about:
- Why investors are excited and where CRON is headed;
- what we’re seeing from the stock in today’s session; and
- what we’ll be watching for ahead.
Why CRON Is Getting Tons Of Attention
As mentioned above, Cronos Group has been the talk of the town when it comes to cannabis stocks as of late as it has led the rebound in the sector. So, why is it that cannabis investors are so interested in the stock?
Like many others in the sector, CRON has spent quite a bit of time and money on the expansion of its footprint in the global cannabis space. With infrastructure growth, supply agreements, and continuous developments being made on a global scale, the stock is consistently in the news.
On top of that, the Canadian cannabis market is quickly emerging and in the United States, CBD just became legal for sale. As regulation continues to change, more positive news comes for cannabis companies across the board.
Not to mention, earnings season is upon us and the company is scheduled to release its earnings report, along with the rest of the companies in the sector.
Of course, all of that leads to investor excitement. However, that’s all what we’re seeing from others in the sector. So, why are investors so interested in CRON?
The one big thing that Cronos has that others in the industry simply don’t is a massive partner. Lets not forget that Altria announced an investment of $1.8 billion to buy at 45% stake in the company. This move gave CRON a good amount of cash for its expanding operations.
Perhaps more importantly, Altria is a tobacco giant that knows its way around a highly regulated market. This gives the company a key competitive advantage, especially as the United States market starts to open.
So far, Aurora Cannabis hasn’t landed any major partnerships outside of the cannabis industry. While Anheueser-Busch partnered with Tilray to create a cannabis-related drink, there was no investment and the deal is very limited.
In fact, the only company in the space that has landed a bigger deal was Canopy Growth Corporation, with the $4 billion investment made in the company by Constellation Brands.
Nonetheless, CRON is starting to lead the charge when it comes to investor interest. With the strong footprint in place, Altria as a partner, and an expanding presence in Canada and around the world, this stock is positioned well to see strong, long run gains.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to Cronos, recent news has been overwhelmingly positive. This is the case both from a sector-wide standpoint and from a company-specific standpoint. Nonetheless, today, gains seem to be taking a break. Currently (11:09), CRON is trading at $23.21 per share after a loss of $0.04 per share or 0.17% 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 Cronos. In particular, we’re interested following the story surrounding the company’s work to continue its global expansion and capitalize on emerging markets in Canada, the United States, and around the world. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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