Have you noticed it? Huge things are happening in the marijuana landscape. For investors, the future looks promising in the industry, especially with Cronos Group (NASDAQ: CRON). Although the company is currently on a downward trend, still everything is pointing that the stock is not too far from getting back on an upward trajectory.
The Canadian cannabis producer had a disappointing first-quarter performance in some way, but still, it will be too early to write off the stock.
Talking about the fundamental offerings, Cronos grows as well as distributes marijuana and also makes forays into medical cannabis.
Cronos Group Inc. Price Analysis
Since March, the stock has had a downward trend; however, the last day or two has shown positive developments. In the last 24 hours, Cronos recovered by almost 0.07% going from $15.37 to $15.38. The fluctuations seem to be good news as it indicates that good days are around the corner for Cronos.
In the past 2 weeks, the company has been up and down with a total of over 3.62 million shares being bought and sold for about $55.70 million. However, things change in a flash and with the stock making positive developments; it won’t take long before we see a breakthrough for Cronos group.
But Has Cronos Group Done Enough?
Just when you think Cronos couldn’t get any better for cannabis stock investors, it will prove you wrong. The company has thus far made significant developments that both in the short as well as the long-term will prove to be vital for the stock.
In all fairness, of course, the most significant boost may have come from last December and the
Also, the deal with Ginkgo Bioworks last year is a big step for the company as it helps the company produce rare cannabinoids by utilizing Ginkgo’s organism design technology.
The move boosts the company’s long-term operating margins, given the fact that alternative cannabis products have higher prices and margins than the cannabis dried flower.
Subsequently, the stock’s revenue should surge anyway. It might not have a plethora of provincial supply agreements like its competitors, but the deal with Cura Cannabis to supply 20,000 kgs of marijuana annually for five years is a massive addition. The company should be reaching several consumers as well; thanks to the partnership with MedMen, a top U.S. cannabis retailer.
Another bullish factor is that in terms of production, the company has heavily invested in capacity expansion. Up to the moment, Cronos’s building 4 facilities each 286,000 square feet that will come online soon.
It would be pretty hard to deny that the massive international efforts the firm is making will not bear fruits for Cronos. The transformative technology on their hands as well from Ginkgo alone should be game changers.
What Now for Cronos?
Yes, the stock has got some volatility, but the growth of the cannabis industry is still strong. Canada’s third-largest company reported revenue of $6.5 million for their Q1 and represented an increase of 16% from the last quarter and hence showing that still, the stock is making some progress irrespective of the recent drop in price.
It is also worth noting that from the Q1 results, the gross margin increased to 54% and has an impact on the profitability due to the small revenue base. All the recent factors indicate a bullish run for Cronos Group Inc., which has set the ground nicely for a substantial upward trend ahead.
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Disclosure: We have no position in CRON and have not been compensated for this article.
Forget APHA and ACB, Buy GTBIF and TCNNF
There are a lot of misconceptions going on when it comes to US legalization. Many investors are buying Aphria (APHA) and Aurora Cannabis (ACB) hoping to bank on what’s happening in the US. However, they are Canadian Licensed Producers and have no business in the US. Investors are buying them because they trade on the major exchanges, but that is the wrong move. The correct move is to buy the US multi-state operators like Green Thumb Industries (GTBIF) and Trulieve Cannabis (TCNNF).
On Election Day voters in New Jersey, Arizona, Montana and South Dakota voted to legalize recreational marijuana. South Dakota and Mississippi voters also approved measures to legalize medical marijuana.
There’s also the prospect of a more pot-friendly White House with President-elect Joe Biden. Vice Presidential Candidate Kamala Harris said at the debate a Biden administration would decriminalize marijuana at a federal level and expunge criminal records of people with marijuana-related offenses.
Green Thumb Industries Inc. (“Green Thumb”), a national cannabis consumer packaged goods company and retailer, promotes well-being through the power of cannabis while giving back to the communities in which it serves.
Green Thumb manufactures and distributes a portfolio of branded cannabis products including Beboe, Dogwalkers, Dr. Solomon’s, incredibles, Rythm and The Feel Collection.
The company also owns and operates rapidly growing national retail cannabis stores called Rise™ and Essence. Headquartered in Chicago, Illinois, Green Thumb has 13 manufacturing facilities, licenses for 96…
What Do Investors See In Medical Marijuana Stock (OTCMKTS:MJNA)?
Medical Marijuana Stock (OTCMKTS:MJNA) has emerged as one of many investor’s favorite pot stocks in the legal cannabis universe in 2020. The stock is already up about 10% in 2020, demonstrating how investors have warmed up to the stock early on in the New Year.
Following a disastrous 2019, cannabis investors lost money but have also learned that their best bets are stocks with strong fundamentals. They are looking for companies that have positioned themselves well in the cannabis industry and have what it takes to go for the opportunities. That is why MJNA stock is catching a lot of investor attention in 2020 because of how it has positioned itself in the cannabis market.
Robust revenue growth and strong financial position have also helped put MJNA on the radar of investors hunting for quality cannabis stocks. Revenue at MJNA more than doubled from $26.5 million in 2017 to $60 million in 2018. MJNA is also not in financial distress as may be the case with other cannabis companies out there. The company finished the third quarter, the most recent reported period, with $5.5 million in cash reserves.
Moreover, MJNA has recently taken steps to expand into new international markets and invest in companies that are leaders in their segments. These prudent actions are helping lift Medical Marijuana stock as more investors learn about them.
About Medical Marijuana stock
Is Tilray Inc (NASDAQ:TLRY) A Buy Or Sell?
For Tilray Inc (NASDAQ:TLRY) and the rest of cannabis stocks, 2019 was no doubt a bad year. But 2020 is shaping up to be a promising year for the stock. To start with, Tilray stock has already gained 8.35% year-to-date. If that says anything, it shows following the broad selloff in Tilray stock last year, we’ve got to a point where sellers are giving way to buyers in the stock.
There are several catalysts that should continue driving NASDAQ:TLRY as you’re about to see. First, below is a brief profile of the company we’re discussing.
Tilray is a Canada-headquartered global cannabis company. It is engaged in activities of cannabis cultivation and processing as well as marketing and distribution of cannabis products. Tilray already has several cannabis products brands to its portfolio. It operates across five continents through subsidiaries in Canada, Australia, Germany, and Portugal.
Following the broad collapse of cannabis stocks in 2019, investors are looking for cannabis stocks that can make a positive impact on their portfolios in 2020. Tilray stands out as an attractive cannabis stock pick in 2020. Here are some of the exciting things about the company.
Tilray CEO sees a bright future for the cannabis industry
On January 25, Tilray CEO Brendan Kennedy spoke on Bloomberg. In that interview, Kennedy framed a rosy outlook for the…