Cronos Group Inc (CRON)

[Gladys Thong]

Flat-Out Avoid CRONOS


January 13, 2021: 3 Pot Stocks to Flat-Out Avoid in 2021

1. Cronos Group
In fact, the company has yet to turn a gross profit, and it's currently losing $1.5 million per quarter after accounting for labor and cost of goods. Additionally, its operating loss worsened from $30.7 million in Q3 2019 to $41.2 million in Q3 2020.

Over the past two years, Altria has lost 50% of its initial investment; Cronos has approximately $1.3 billion in cash and securities left. Its projected growth from U.S. expansion has also not done well. During Q3 2020, Cronos recorded $1.6 million in U.S. sales -- and it spent $12.2 million in operating expenses to attain that revenue.

Despite its poor financial performance, Cronos is hypervalued, trading at 87 times sales.