Cronos Group Inc (NASDAQ: CRON) is starting the week on a strong note with great post-Labor Day gains. Over the past 30 days, the company has seen pretty strong growth, and for good reason. With the Canadian recreational cannabis market opening up in little more than a month, pot stocks that are active in the area are flying. CRON just happens to be one of the most active companies in preparation for this massive market opening. Today, we’ll talk about:
- Why investors are excited about CRON,
- what we’re seeing from the stock; and
- what we’ll be watching for ahead.
Why Investors Are Excited About CRON
As mentioned above, Canada will legalize cannabis for adult use in less than a month, and several companies are working to take their slice of the market that could be worth between $4 and $8 billion in the first year. Cronos isn’t just one of the companies working to take its slice, it has already taken a chunk.
Over recent weeks, the comapny has announced various supply agreements with retailers and government entities in provinces like Quebec, Ontario, Nova Scotia, Prince Edwards Island, and more. In fact, as a result of the agreements that it has entered into CRON is set to provide adult-use cannabis to regions that house well over 50% of the Canadian population.
With so much work taking place in order to take their chunk of the recreational market in Canada, CRON is in a great position. In just over a month, when recreational cannabis becomes legal officially in Canada, the company’s products will be some of the most predominant in the region. Therefore, investors have been pushing the stock upward in anticipation of the spike in revenue legalization in Canada is likely to cause for the company.
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 proved to be overwhelmingly positive. After all, over the last month, we have received news of multiple supply agreements that will likely generate substantial revenue for the company. So, it comes as no surprise that excited investors continue to push the stock upward in anticipation of the Canadian launch of the recreational cannabis industry. Of course, our partners at Trade Ideas were the first to alert us to the gains. Currently (8:03), CRON is trading at $10.68 per share after a gain of $0.80 per share or 8.10% 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 comapny’s movements in Canada and the revenue growth following the launch of the Canadian adult-use cannabis market. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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