Jim Cramer’s take
Jim Cramer, the widely followed host of Mad Money on CNBC, gave his opinion on the deal between Cronos Group (CRON) and Altria on December 11. Cramer called Altria’s acquisition of a 45% stake in Cronos Group last week a “smart move” for Altria. The tobacco industry is on a decline with more and more people choosing not to smoke. This trend brings some concern for the growth trajectory of companies such as Altria.
However, despite Cronos Group gaining a backing from an investor with deep pockets, Cramer stated, “I believe that Canopy Growth remains the best way to play the Canadian cannabis market.” Cronos Group was almost flat during the day, while Canopy Growth gained nearly 7% on December 11.
This is not the first time Jim Cramer said he was positive on Canopy Growth (WEED). Last month, Cramer said that he liked Canopy Growth because of its backing from Constellation Brands as a result of the latter’s $4 billion investment. Cramer also stated that Canopy Growth is “the only one you can really own and you’ve got to sell the rest.”
While Canopy Growth, the largest cannabis company (HMMJ) (MJ) in Canada, has many supporters, the industry was also recently marred when Aphria (APHA) stock fell on remarks that the company diverted investors’ funds to Latin American companies that were linked to insiders at inflated values.