Last week’s announcement of Cronos Group’s Q4 earnings temporarily lifted its stock price before continuing its decline.
Cronos’ Q4 sales stood at $1.6 million. YOY, this figure marks a growth of 274%, and 636% for the entire year.
Cronos Group, a recent IPO, is a Toronto-based marijuana company. Its CEO, Mike Gorenstein, addressing their earnings bump, expressed bullishness with regard to the company’s prospects:
“We are building Cronos Group with a focus on the long-term and 2017 set the foundation for the explosive growth we have already started realizing in 2018…We are extremely proud of all that our team has accomplished and look forward to a year of rapid increases in sales, commencing distribution in new markets, further developing disruptive intellectual property and launching new iconic brands.”
Points of Interest:
- Cronos expects to increase production capacity and efficiency having completed improvements to three their production facilities.
- They are launching a joint venture in Israel for the production and distribution of medical cannabis.
- They have also begun distributing products through Pohl-Boskamp, a European pharmaceutical company.
- The Pohl-Boskamp contract includes a 5-year agreement to distribute their product “Peach Naturals” to pharmacies in Germany.
The U.S. Justice Department’s stance on legal cannabis is a major driver of uncertainty and impediment to the cannabis industry’s potential. Despite the fundamental capacity exhibited by any companies operating in this space, this legal impediment constitutes an ever-present risk as it also constitutes a potentially bullish signal if or when lifted.
Technical Overview: Symmetrical Triangle and Uptrend
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