On February 4, Cronos Group (CRON) surged ~12% on the Canadian exchange, which was one of its best days so far this year. The stock has more than doubled since the beginning of 2019 and closed at 23.25 Canadian dollars on February 4.
Cramer says Cronos is the “second best”
Cronos Group was recently called the “second best” by Jim Cramer, the widely followed host of Mad Money, because of its partnership with tobacco giant Altria (MO). Jim Cramer’s top pick, however, remains Canopy Growth (WEED) (CGC). Read Jim Cramer: CRON Is Second-Best after CGC for more information. While Jim Cramer was optimistic about Cronos Group, Citron Research tweeted last week that it was shorting CRON for trading at 70% above analysts’ target.
However, despite Citron’s short position, the more recent enthusiasm in the company appears to be driven by Altria’s quarterly earnings, which were released on January 31. In its earnings call, Altria’s management provided its insight into the opportunities and expectations from Cronos Group in the years to come.
There is no doubt that the cannabis industry has potential. However, picking out which companies will ride the opportunity successfully will remain a key focus for investors given several companies playing on the field including HEXO (HEXO), Aphria (APHA), and others (MJ).