- After a few weeks of consolidation, a safe entry can be initiated. - Weekly cloud is thick in volume showing bullish trend is intact. - CRON has significant advantage over their piers having a helping hand from MO (Altria). With their cigarette distribution system, 1.8 billion investment & connections to more potential partners, CRON is set to go to the moon.
CRON is not even a top 10 producer by capacity. The cash pile is literally the only advantage they have over their peers. I agree with you that in the long term, CRON may be a good investment, but investors should also understand that smoking is perhaps not going to be the most favoured method to consume cannabis.
I agree with your buy zone. I think the shorters will be taking profits at $14, making the stock bounce there a few times. But when the shorters have played their hand, there is no guarantee that the trend will reverse.
TLRY made a parabolic move. They have only been coming down, ever since that happened. I think with CRON, we should be very careful indeed, because if $14 support fails, the next level will be about $11, which would still be a ridiculous valuation for this stock, when looking at the fundamentals.
Litwolf
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@Barkworth, I agree, their capacity is very poor if compared to their piers. I'm looking more towards CRON getting access to JUUL and MO's distribution system.
ACB CEO mentioned in their recent earnings call that edibles and vapes would be the highest margin products and beverages were years away to getting to their full potential; due to not being able to not sell in bars and public areas. With that, I'm hoping JUUL can be helping hand for CRON in the coming years!
TLRY was too over hyped to be compared imo. Trading at $80-120 levels when revenue under 10 million? Was a joke ahah It had to come down.
We'll have to see if CRON's support hold after consolidating for a few weeks. Stop loss is set, now we wait with patience!
Cheers
Barkworth
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@Litwolf, Absolutely. TLRY is not the best example, but CRON did get too much hype in too short at a time. Now you see those bounces every time, but I can't help but think this is all FOMO, more or less confirmed by the lower highs. I would love to get back into CRON, but it has to make sense, especially with the market so fragile at the moment. Again, yeah, TLRY was crazy. Based on absolutely nothing. Lots of rumour about insider enrichment, etc. We'll see where it leads. CRON would seem a secure bet, even at these levels, but if we wait a little longer, we may get a better entry. Meanwhile, perhaps sell the bounces and buy the drops...?
Litwolf
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@Barkworth, 4 hour time frame shows a possible upward channel in the making, lets see if the channel holds next week. If it does, maybe start selling the highs and buy dips like you said!