When Cron Breaks $30.00 CDN Then It Will Run To $35.00 See Video Reviews

Friday Summary CRON Buy The Dip... Don't Question It Just Buy It

Cronos The Stock To Buy

Cronos Group: around 120,000 kilos

You'd probably think Cronos Group (NASDAQ:CRON) is the greatest thing since sliced bread, given that it's doubled since early December. But it's only on track to be Canada's seventh largest grower by annual output. Most of Cronos Group's production will come from its joint venture known as Cronos GrowCo (70,000 kilos), with Peace Naturals kicking in 40,000 kilos at its peak. The wild card for Cronos will be how much cannabinoid production it can expect following a partnership with Ginkgo Bioworks that'll cost it up to $100 million.

https://www.fool.com/investing/2019/02/24/11-marijuana-growers-thatll-top-100000-kilograms-a.aspx

A powerful partner

There are marijuana companies that are bigger than Cronos Group by revenue and planned marijuana production. But Cronos and Canopy Growth are the only two cannabis companies with significant financial firepower and access to supply-chain, branding, and regulatory expertise because of investments from major consumer-goods companies. Cronos Group sold 45% of itselfto tobacco powerhouse Altria (NYSE: MO) for $1.8 billion in December; this followed Canopy Growth's decision to sell 38% of itself to alcohol giant Constellation Brands (NYSE: STZ) for roughly $4 billion last August.

Having Altria as a partner is a big win for Cronos Group. Altria owns the U.S. Philip Morris tobacco brands, including Marlboro cigarettes, and it has extensive experience navigating regulatory scrutiny. It's built up a slate of successful brands, and it has extensive relationships with farmers and other suppliers. Additionally, Altria owns over 30% of Juul, a leading vape company that theoretically could provide Cronos Group with some intriguing collaboration opportunities.

Cronos Group hasn't reported results for the calendar fourth quarter yet, so we don't know how it did after recreational sales began in Canada -- but sales jumped 186% year over year to CA$3.8 million in the third quarter, so its products appear to be gaining traction. Its annualized production capacity was just 6,650 kilograms in Q3, but it has said that capacity will reach 40,150 kilograms this year and that it plans to produce 117,000 kilograms per year. Those predictions were prior to Altria's investment, so you could see Cronos Group announce new targets during its next earnings release.

During Altria's fourth-quarter earnings call, it highlighted a forecast for legal marijuana sales of $40 billion per year, based on current legal markets. It also said worldwide legalization could increase that market opportunity to $250 billion. Given those figures and Altria's help, it could be smart to own Cronos Group for the long haul, too.

Todd Campbell has no position in any of the stocks mentioned. His clients may have positions in the companies mentioned. The Motley Fool recommends Constellation Brands. The Motley Fool 

https://www.fool.com/investing/2019/02/19/3-marijuana-stocks-to-buy-for-long-haul-in-2019.aspx

House Positions for C:TRST from 20190220 to 20190220

House	Bought	$Val	Ave	Sold	$Val	Ave	Net	$Net
33 Canaccord	182,802	2,102,948	11.504	52,985	607,515	11.466	129,817	-1,495,433
85 Scotia	178,075	2,046,528	11.493	86,344	993,934	11.511	91,731	-1,052,594
22 Fidelity	105,166	1,209,186	11.498	49,557	571,008	11.522	55,609	-638,178
79 CIBC	546,889	6,295,047	11.511	512,376	5,896,154	11.507	34,513	-398,893
39 Merrill Lynch	128,737	1,482,342	11.514	97,932	1,124,068	11.478	30,805	-358,274
2 RBC	228,612	2,628,106	11.496	201,105	2,311,112	11.492	27,507	-316,994
14 ITG	31,639	363,793	11.498	9,577	110,730	11.562	22,062	-253,063
143 Pershing	23,600	272,045	11.527	1,700	19,303	11.355	21,900	-252,742
18 Echelon	20,700	237,775	11.487	500	5,825	11.65	20,200	-231,950
16 Paradigm	10,000	115,200	11.52	0			10,000	-115,200
19 Desjardins	12,663	145,695	11.506	8,550	98,433	11.513	4,113	-47,262
99 Jitney	21,800	251,543	11.539	17,800	205,473	11.543	4,000	-46,070
89 Raymond James	3,200	36,870	11.522	0			3,200	-36,870
57 Interactive	4,480	51,398	11.473	1,411	16,252	11.518	3,069	-35,146
88 Credential	9,585	110,338	11.512	6,541	75,557	11.551	3,044	-34,781
13 Instinet	48,951	562,119	11.483	47,875	551,774	11.525	1,076	-10,345
83 Mackie	1,000	11,500	11.50	0			1,000	-11,500
97 M Partners	1,500	17,235	11.49	750	8,730	11.64	750	-8,505
15 UBS	250	2,873	11.492	0			250	-2,873
28 BBS	4,536	52,355	11.542	4,300	49,748	11.569	236	-2,607
80 National Bank	14,619	167,371	11.449	14,465	165,844	11.465	154	-1,527
59 PI	100	1,138	11.38	0			100	-1,138
3 AltaCorp	0			1,000	11,550	11.55	-1,000	11,550
74 GMP	4,400	50,596	11.499	6,680	76,732	11.487	-2,280	26,136
36 Latimer	3,045	34,991	11.491	7,722	88,762	11.495	-4,677	53,771
55 Velocity	0			5,000	57,684	11.537	-5,000	57,684
5 Penson	97,254	1,115,779	11.473	102,755	1,180,112	11.485	-5,501	64,333
62 Haywood	5,000	57,600	11.52	12,100	140,515	11.613	-7,100	82,915
65 Goldman	12,063	138,649	11.494	19,400	222,636	11.476	-7,337	83,987
68 Leede	0			15,000	174,000	11.60	-15,000	174,000
9 BMO Nesbitt	89,660	1,029,767	11.485	115,438	1,326,636	11.492	-25,778	296,869
124 Questrade	50,446	580,333	11.504	79,826	919,460	11.518	-29,380	339,127
53 Morgan Stanley	3,731	42,896	11.497	38,400	441,234	11.49	-34,669	398,338
7 TD Sec	386,564	4,445,278	11.499	453,262	5,206,997	11.488	-66,698	761,719
72 Credit Suisse	0			124,200	1,431,636	11.527	-124,200	1,431,636
1 Anonymous	349,956	4,024,771	11.501	486,472	5,594,651	11.50	-136,516	1,569,880
TOTAL	2,581,023	29,684,065	11.501	2,581,023	29,684,065	11.501	0	0

House Positions for C:APHA from 20190220 to 20190220

House	Bought	$Val	Ave	Sold	$Val	Ave	Net	$Net
39 Merrill Lynch	505,685	6,594,449	13.041	281,099	3,662,705	13.03	224,586	-2,931,744
79 CIBC	2,223,500	28,921,964	13.007	2,038,065	26,542,064	13.023	185,435	-2,379,900
85 Scotia	457,379	5,966,395	13.045	381,683	4,979,341	13.046	75,696	-987,054
90 Barclays	38,500	502,734	13.058	3,500	45,696	13.056	35,000	-457,038
13 Instinet	148,363	1,924,493	12.972	131,500	1,703,957	12.958	16,863	-220,536
57 Interactive	4,690	61,315	13.074	2,160	28,233	13.071	2,530	-33,082
70 Manulife	2,152	28,426	13.209	360	4,712	13.089	1,792	-23,714
28 BBS	2,812	36,681	13.044	1,202	15,776	13.125	1,610	-20,905
48 Laurentian	1,000	13,130	13.13	0			1,000	-13,130
33 Canaccord	548	7,156	13.058	0			548	-7,156
89 Raymond James	500	6,550	13.10	0			500	-6,550
22 Fidelity	400	5,224	13.06	0			400	-5,224
36 Latimer	4,622	60,246	13.035	4,508	58,730	13.028	114	-1,516
68 Leede	200	2,646	13.23	200	2,636	13.18	0	-10
65 Goldman	300	3,885	12.95	500	6,516	13.032	-200	2,631
62 Haywood	0			250	3,250	13.00	-250	3,250
76 Industrial Alliance	380	4,974	13.089	2,100	27,247	12.975	-1,720	22,273
56 Edward Jones	391	5,120	13.095	2,400	31,444	13.102	-2,009	26,324
99 Jitney	135,700	1,764,160	13.00	137,800	1,794,888	13.025	-2,100	30,728
88 Credential	67,390	881,187	13.076	72,324	947,774	13.105	-4,934	66,587
14 ITG	1,200	15,692	13.077	6,520	85,942	13.181	-5,320	70,250
101 SG Capital	2,950	38,214	12.954	9,950	130,013	13.067	-7,000	91,799
143 Pershing	13,905	180,376	12.972	21,750	279,719	12.861	-7,845	99,343
124 Questrade	91,311	1,188,928	13.021	106,927	1,395,057	13.047	-15,616	206,129
80 National Bank	112,044	1,456,942	13.003	128,153	1,667,719	13.013	-16,109	210,777
53 Morgan Stanley	1,515	19,594	12.933	17,986	234,026	13.012	-16,471	214,432
1 Anonymous	1,428,240	18,582,946	13.011	1,454,943	18,919,990	13.004	-26,703	337,044
19 Desjardins	45,125	587,878	13.028	101,933	1,331,550	13.063	-56,808	743,672
7 TD Sec	1,267,218	16,526,232	13.041	1,383,877	18,026,396	13.026	-116,659	1,500,164
2 RBC	407,012	5,307,208	13.039	533,947	6,964,061	13.043	-126,935	1,656,853
9 BMO Nesbitt	108,958	1,424,719	13.076	248,353	3,230,022	13.006	-139,395	1,805,303
TOTAL	7,073,990	92,119,464	13.022	7,073,990	92,119,464	13.022	0	0