Cronos has been nothing short of astounding in 2019. News that Marlboro was dumping money on them paired perfectly with the correction rally that has moved the market higher thus far. Prices fell across the sector in October/November after Canada legalized and earnings proved the hype did not live up to reality. Most cannabis companies had negative earnings per share that fell short of estimates and the race to get a head start in the market created a gluttony of product. Despite this it was hard not to see long term potential and its no surprise that despite all of this. prices have made a comeback. However.....Cronos has delayed earnings multiple times in the last couple of weeks. Today it was announced they sold their stake in a private cannabis facility to rivals Aurora Cannabis. It has failed to break above $23 and attempt a new all time high. The black market in Canada still holds a market-share of 79% The S&P500 fell sharply at the open after reaching the October high in pre-market trading. The market appears to be starting a correction at a time Cronos still feels very extended. Perhaps Cronos will break lower before making a new attempt at an all time high. Will it happen before earnings? Will earnings slap some reality into a very hyped up sector? What do you make of Cronos and where the over Cannabis sector is heading short term, next quarter/next few months, next year?
Comment:
apologies it didn't publish the correct chart....don't know why it did this. $19.70 will be important price to watch. if this fails paired with weak fundamentals on earnings a drop to $13 could play out over the coming months.