This week, I dip a deep dive on a cannabis stock many of you have requested: Cronos Group Inc. (Nasdaq: CRON).
I looked at what the company does, its financials and its stock.
About Cronos Group
Cronos is an international cannabinoid company based in Canada.
It manufactures, markets and distributes hemp-derived supplements and cosmetic products through e-commerce, retail and partner organizations.
It operates in both the recreational and medical use markets.
Its brands include:
- Peace Naturals: Billed as the company’s high-quality medical cannabis line, it includes vaporizers and oils. It’s available in Australia, Canada, Germany and Israel.
- Cove: This line includes four different crafted lines of cannabis, ranging from sativa to indica. It also includes a hybrid CBD. Most of the products are suited for oil, flower or pen distribution. It’s only available in Canada.
- Spinach: This is another cannabis line that includes hybrid, sativa and indica lines. Users can consume the lines as oil, rolled or vapor. It is also available primarily in Canada.
- Lord Jones: Cronos Group’s primary CBD line, it includes tinctures, infused cosmetics, bath oils, gumdrops and chews. It is available mostly in the U.S.
- Happy Dance: This is another CBD line that includes more infused skin care. It’s created in partnership with actress Kristen Bell. It is available in the U.S.
- Peace+: These products are hemp-derived CBD. They are tinctures that come in a variety of flavors. This line has not fully been released, but will be available in the U.S.
The third quarter was big for Cronos Group. In addition to the partnership with Kristen Bell, it appointed a new CEO who brings a ton of experience in growing global consumer brands. (More about both of these initiatives in the Marijuana Market Update.)
Cronos Group Financials
The company had a solid third quarter:
- Reported net revenue of $11.4 million in the quarter — a $5.6 million increase from the same quarter a year ago.
- Reported a gross loss of $1.5 million — a $1.6 million decrease from the same quarter a year ago.
- The company’s arm in Israel — Cronos Israel — received all the necessary certification from the Israeli government to begin cultivating, producing and marketing flower, pre-rolls and oils in Israel.
It wasn’t all good news, though. Check out the Marijuana Market Update for a full picture look at Cronos’ financials.
Cronos Group (CRON) Stock Picture
The positive news in the quarterly report resonated with the company’s share price:
Cronos’ Stock Popped 35% After Earnings Report
Immediately after its quarterly earnings report, Cronos’ stock price popped by more than 35%.
In the Marijuana Market Update, I explain how CRON stock ranks on Adam O’Dell’s six-factor Green Zone Ratings system — and whether it’s a cannabis stock to get into before 2021.
Cannabis Watchlist Update
Don’t forget: I just added a new stock to the Cannabis Watchlist this week! If you missed it, you can catch up here.
Our watchlist performance is strong so far:
- Turning Point Brands (NYSE: TPB) is the most recent addition to the list. I added it to the watchlist in the middle of October. It’s a traditional tobacco company that has started making products for the cannabis industry. So far, it has outperformed the rest of the cannabis industry and produced gains of more than 30% since I put it on the list.
- Schweitzer-Mauduit International Inc. (NYSE: SWM) is another tobacco company that has developed products for cannabis use. SWM is a strong performer. Since I put it on the watchlist in September, the company’s share price has jumped more than 20%.
- PerkinElmer Inc. (NYSE: PKI) tests various strains of cannabis for consumption. Since I put it on the Watchlist in September, the company’s shares are up more than 9%.
And our new stock is up 7% in just a few days!
As always, my team and I love the feedback we’re getting on our YouTube channel and through email.
Feel free to send comments, questions and stocks you want us to examine to feedback@dev.moneyandmarkets.com — or leave a comment on YouTube!
Where to Find Us
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Coming up this week, we’ll have more on The Bull & The Bear podcast and our Money & Markets Week Ahead, so stay tuned.
Until next time…
Safe trading,
Matt Clark
Research Analyst, Money & Markets
Matt Clark is the research analyst for Money & Markets. He’s the host of our podcast, The Bull & The Bear, as well as the Marijuana Market Update. Before joining the team, he spent 25 years as an investigative journalist and editor — covering everything from politics to business.