Connect with us


Cronos Group Inc. (NASDAQ:CRON) Pops On Altria Acquisition Talk After Q3 Net Loss Disappointment



Cronos Group Inc. (NASDAQ:CRON) is skyrocketing up the charts having emerged it is an acquisition target of Marlboro cigarette-maker Altria Group Inc. NYSE: MO. The takeover bid comes weeks after the Canadian cannabis company reported mixed financial results, depicted by widening net loss and robust revenue growth.

Cronos Group Price Analysis

After plunging in the wake of the disappointing financial results, the stock has bottomed out in the recent trading session. The acquisition chatter has all but accelerated the upward momentum. The stock appears to have hit a solid support level at the $7 a share level, from where it is trying to make a comeback back to the top.

The next big cannabis story to hit North America is Phoenix Life Science International (PLSI), traded in the US, but with the largest global production based in the tropics and a license to distribute worldwide. Take a look at Phoenix Life Science International PLSI), Its currently trading under $18 dollars per share on the OTC markets. Learn More Now!


After taking out the $10 a share level, the stock looks set or make a run for 52-week highs of $19 especially on the takeover news. Any sell-off now would experience strong support at the $6 a share level. A breach of the critical support level could see the stock edging lower, in continuation of the emerging uptrend.

Altria- Cronos Group merger

While no deal has been reached so far, Cronos has confirmed that it is in discussions with Altria in what it says could lead to potential investment.  It does not come as a surprise that Cronos is an acquisition target.

Altria has had to rethink its long-term plan in the wake of increased campaigns discouraging people from engaging in cigarette smoking. Cigarette sales have taken a significant hit in recent years due to the older smoking generation dying.

Legalization of cannabis for recreational use appears to have presented a window of opportunity. Cannabis and e-cigarettes have presented a massive opportunity in part because the young generation are opting for vaping given the medical benefits that marijuana comes with.

Robust Revenue Growth

Cronos is seen as an idea pick that will give the cigarette maker a head start in the burgeoning cannabis marketplace. The company is fresh from reporting a 186% increase in revenues that came in at $3.8 million, further attesting to strong demand for its cannabis products in the market.

The robust revenue growth does not reflect the effect of recreational use legalization as the same law came into effect on October 17. Q4 revenue, on the other hand, could receive a boost as a result of the widened target market.

“We are encouraged with our third quarter results, which reflect the meaningful progress we are making on our strategic initiatives,” said CEO, Mike Gorenstein.

However, a wider than expected net loss of 44 cents a share versus a 1-cent profit a year is a point of concern for investors. The wider than expected net loss came on the company investing a great deal on marketing efforts. Marketing and sale expense in the quarter was up 240%.

The net loss triggered a sell-off of the stock. In response to the wider than expected net loss, the management insisted they made landmark partnerships all in the effort of expanding the company’s reach beyond the flower and Canada.

In addition, the company has reiterated its pursuit of opportunities in the recreational cannabis marketplace. Cronos has already launched a mainstream recreational brand dubbed spinach.

The company has also completed the construction of a 286,000 sq. Ft. purpose-built indoor production facility. Cannabis cultivation in the facility has already commenced on the company-receiving license mid this year.

Bottom Line

While the Altria takeover talk has had a positive impact on the stock, Cronos Group remains well positioned to succeed on its own. The cannabis company has shown it has what it takes to compete against the big boys, in pursuit of market share in the burgeoning cannabis sector. Robust revenue growth all but affirm the company’s growth potential.

Recreational use legalization in Canada, has on the other hand, triggered a high demand for cannabis products that continues to outstrip supply. Cronos Group being one of the early movers and established players remains well positioned to take advantage of the new market opportunity.

Pushing the barriers for global distribution, Phoenix Life Science International (PLSI) is the next cannabis play. Just think Canopy x 100, that is how big their plantation in the tropics will be. No lights, no green houses, just maximum growth + minimal cost = home run. Learn More Now!


Learn More About PLSI at your brokerage today!




Cronos Group Inc. (NASDAQ:CRON) Pops On Altria Acquisition Talk After Q3 Net Loss Disappointment

Cronos Group Inc. (NASDAQ:CRON) is skyrocketing up the charts having emerged it is an acquisition target of Marlboro cigarette-maker Altria...

Business6 days ago

American Green Inc (OTCMKTS:ERBB) Kicks Off December On Rough Patch

American Green Inc (OTCMKTS:ERBB) seems to have started the month of December on a rather dull pace after closing the...

Business2 months ago

The Sales Growth Trend Persists for PotNetwork Holdings Inc (OTCMKTS:POTN)

PotNetwork Holdings Inc (OTCMKTS:POTN) is perhaps THE juggernaut CBD story, aside from CVSI, over the past 12 months. That is...

Business2 months ago

Hemp Inc (OTCMKTS:HEMP) Looks to Garner Support on Expansion and CBD Talk

Hemp Inc (OTCMKTS:HEMP) shares recently slipped under technical support in the $0.025. The stock has possibly found some bids in...


How to View the Current Action in Hemp Inc (OTCMKTS:HEMP)

One stock that has started to key on potential support in a lateral range is Hemp Inc (OTCMKTS:HEMP). The stock...


Near-Term Headwinds Hit Scotts Miracle-Gro Co (NYSE:SMG) With A Huge Impact

Bank of America Corp (NYSE:BAC) has disclosed that Scotts Miracle-Gro Co (NYSE:SMG) has lately been experiencing several near term risks....


Argitek Holdings Inc (OTCMKTS:AGTK) To Focus On Acquisition, Revenues & Profitability In 2018

Argitek Holdings Inc (OTCMKTS:AGTK) recently revealed that in 2018, the company’s main focus will be the acquisition, revenues, and profitability....


PharmaCyte Biotech Inc (OTCMKTS:PMCB) Completes Pore Size Studies & 29 Tests Useful In Pancreatic Cancer Therapy

PharmaCyte Biotech Inc (OTCMKTS:PMCB) has said that the cells it is planning to use in the clinical trial in patients...


Puration Inc (OTCMKTS:PURA) To Apply For Canadian Recreational Cannabis Cultivation License; To Give EVERx CBD Sports Water Free Samples

Puration Inc (OTCMKTS:PURA) recently announced that it will be applying for the Canadian recreational cannabis cultivation license. The confirmation came...


Marijuana Company Of America Inc (OTCMKTS:MCOA)’s JV Completes 10,000 Sq. Ft. Greenhouse Set up; Provides Update on Oregon Project

Marijuana Company Of America Inc (OTCMKTS:MCOA) recently announced that its Joint Venture with Bougainville Ventures Inc. based in Washington has...


Create a future where the human body can repair, restore, and rejuvenate itself


Trading Symbol


The Next Big Global Cannabis Play