Cronos Group Inc (CRON)

[Gladys Thong]

Is Cronos Group Stock a Buy? NO!!

https://www.fool.com/investing/2020/12/12/is-cronos-group-stock-a-buy/

Business isn't that impressive
. . . Despite losing more than $3.6 for every $1 in revenue, Cronos paid out a whopping 70% of its sales in stock compensation, amounting to $7.9 million. . . . The high ratio of shares issued despite lackluster performance is quite concerning.
. . . In Q3 2020, the company's U.S. sales amounted to $1.6 million . . . at the cost of $12.2 million in operating losses for the same segment. . .

What about valuation?
Unfortunately, Cronos is arguably the most expensive pot stock in the entire sector, with a staggering valuation of more than 83.4 times revenue. . . .

Due to its high valuation, steep financial losses every quarter, and lavish stock compensation expenses, there is just no compelling reason to buy Cronos stock. . . . I'd recommend marijuana investors stay far away from the stock . . .