Was Cronos the Wrong Marijuana Stock for Altria?


The cannabis investing craze continues, and marijuana companies have never gotten more attention from mainstream investors. Cronos Group (NASDAQ:CRON) is a great example, as the cannabis company became a particularly hot commodity once tobacco giant Altria Group (NYSE:MO) announced that it would spend $1.8 billion for a 45% stake. Before Cronos released its fourth-quarter financial report earlier this week, investors had expected to see impressive sales gains that would match up to the giants of the industry. Cronos did indeed see higher revenue, but the growth was disappointingly slow, and that’s making some Altria investors wonder if the tobacco company made the wrong choice of partners. Cronos Group’s fourth-quarter results both reflected the growth potential in the cannabis industry and the costs of pursuing that growth. Sales for the company climbed 248% to 5.6 million Canadian dollars, but Cronos posted a net loss of CA$11.61 million, or CA$0.06 per share. Was Cronos the Wrong Marijuana Stock for Altria?

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