Connect with us


Innovation Has Cronos (CRON) Looking Ready To Shake Up The Cannabis Industry



The marijuana business is maturing nicely, but the stocks are still keeping it exciting as we round into the last half of 2018.

Blue chip Maricann (OTC:MRRCF, CA:MARI), for instance, is down 50% this year on news of maybe-shady former director doings. Even though the company is executing its plans perfectly.

Meanwhile, pink sheet Namaste (OTC:NXTTF) has doubled simply for growing sales from fair to modest. Even though its about 17th in revenues among US and Canadian MJ companies.

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!

But there’s one theme investors should watch for long-term success: international expansion. And there are three good companies, Cronos, Tilray, and Canopy Growth that are the best bets to excel in this area.


Good news keeps coming out of Cronos (CA:CRON; Nasdaq:CRON). Expansion plans are so ambitious, Cronos is establishing itself as a world leader for marijuana plant genetics. It’s turning that into an international asset, too. So far, it has growth facilities in Canada, Australia, Columbia and Israel. Those are all traditional field or indoor growing facilities. It’s the thing its doing differently that has investors excited.

Cronos is the first grower to announce it’s undertaking a radically different approach to meeting market demand for high quality cannabidiols. Call it the microbrewery model. Cronos is partnering with Gingko Bioworks to produce cannabidiols from genetically engineered strains of yeast.

The experiment, which just might work, would drastically streamline production. Growing whole plants is time consuming and expensive. Fermenting yeast isn’t.

This model has the potential to upend the entire medical marijuana industry, which is becoming radically more sophisticated. A few years ago, the only cannabinoids of interest to most buyers were THC (the one that makes you high) and CBD (cannabidiol, the non-high one use to treat children with seizures and many other ailments).

Those two cannabinoids are predominant in the plant, but others may be even more powerful or better suited to different purposes. The drawback is that CBG, CBN, CBC, CBE, CBT, THCA, THCV and more occur in small amounts making them expensive and difficult to extract in quantity.

One analyst has banged Cronos for its high R&D spending. But that is how this company became the leader in plant genetics. Its spending is on strategic target. The problem here is that investors have gotten ahead of themselves.

Cronos’ market cap is now $2.04 billion. That puts it in the company of industry giants with much greater sales and better cash flow.

This irrational exuberance shows up in its enterprise value muliutples: EV/Rev 34 and EV/EBITDA 174 X.

A few other marijuana companies are just as astronomically priced, throwing the averages off a bit. But the median number for those valuations in the marijuana universe are EV/Rev 25 and EV/EBITDA 34.

So, judged among its peers, Cronos is seriously overvalued. In turn, the whole marijuana sector carries much higher valuations that other growth industries like information technology and computer design.

Many investors are hoping that the strong sales growth, ambitious expansion plans and yeast experiment will make CRON attractive to a buyer. The name Diageo is often whispered.

Chill on that. It could happen for CRON. But a buyout could happen for any of the good marijuana businesses.

We suggest letting the price settle a bit. The share price met resistance around $8 earlier this year. That level should now be its new support. The stock may not go all the way back to that level, but anything under $10 would be a fair price now.

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!


Trading Symbol


The Next Big Global Cannabis Trade


Business9 hours ago

The Green Organic Dutchman Holdings Ltd (OTCMKTS:TGODF) Roller Coaster Ride Continues

Green Organic Dutchman Holdings Ltd (OTCMKTS:TGODF) just announced its financial and operational results for the third quarter of fiscal 2018,...

Business9 hours ago

Puration Inc (OTCMKTS:PURA) Catches a Fresh Bid on New Numbers

Puration Inc (OTCMKTS:PURA) just announced its third quarter financial report for the period ending September 30, 2018.  According to the...

Business10 hours ago

Why Expectations May be Dropping for Tilray Inc (NASDAQ:TLRY)

Tilray Inc (NASDAQ:TLRY) just reported financial results for the third quarter and nine months ended September 30, 2018. The company...

Business1 day ago

Why OrganiGram Holdings Inc (OTCMKTS:OGRMF) Gets More and More Interesting on the Pullback

OrganiGram Holdings Inc (OTCMKTS:OGRMF) recently announced that the company has signed a supply agreement with the Province of British Columbia....

Business1 day ago

Namaste Technologies Inc (OTCMKTS:NXTTF) Looks for Some More Magic

Namaste Technologies Inc (OTCMKTS:NXTTF) recently announced that the company has acquired over 28,000 registered users through NamasteMD Inc, and that...

Business1 day ago

A Sober Look at Green Organic Dutchman Holdings Ltd (OTCMKTS:TGODF)

Green Organic Dutchman Holdings Ltd (OTCMKTS:TGODF) has presented itself as somewhat of a mystery item in the space. The company...

Business2 days ago

Marimed Inc (OTCMKTS:MRMD) Taps Wall Street Talent for M&A Strategy

Marimed Inc (OTCMKTS:MRMD) recently announced it has named Charles Finnie as its Chief Strategy Officer, effective immediately. Finnie, who most...

Business3 days ago

Why the Latest Dip in New Age Beverages Corp (NASDAQ:NBEV) May Be a Major Gift

New Age Beverages Corp (NASDAQ:NBEV) is starting to drift down into very interesting territory from both a technical and a...

Business3 days ago

Pyxus International Inc (NYSE:PYX) Could be an Opportunity in the Making

Pyxus International Inc (NYSE:PYX) shares were hammered to close out the week after announcing relatively dreadful fiscal Q2 results, which...

Business4 days ago

Aurora Cannabis Inc (NYSE:ACB) Shares Rebound as Company Turns Focus to South American Market

Aurora Cannabis Inc (NYSE:ACB) just acquired ICC Labs, or so appears to be the case. As a point in fact,...

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


Trading Symbol


The Next Big Global Cannabis Play