Still blooming and pulling all the stops to attract new investors, the Canadian cannabis company Cronos Group (NASDAQ: CRON), continues to gain traction for multiple reasons. A recent flurry of legislative activity that makes federal cannabis legislation a likely reality and a move toward releasing lab-grown cannabis stocks gives (NASDAQ: CRON) a favorable outlook. The financial tides favor Cronos and investing in the stock can strengthen your portfolio.
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| Open2.450 | Close2.500 |
| Vol / Avg.1.410M / 3.027M | Mkt Cap964.686M |
| Day Range2.420 - 2.530 | 52 Wk Range1.640 - 2.990 |
How to Buy Cronos Stock
Check out Benzinga's step-by-step guide to help you buy Cronos stock.
Pick a Brokerage
Online brokers let you trade stocks, exchange-traded funds (ETFs), mutual funds, forex and more. You can get the latest financial news, historical performance records and crucial stock information on these platforms.
We’ve handpicked the best online brokers to get you started.
Decide How Many Shares You Want
You can choose the number of shares to purchase based on your financial needs. Once you have a set amount of money put aside for the investment, divide that amount by the stock price to get the exact number of shares you would like to buy.
Let’s say you have $100 set aside for Cronos. At $6 per share, you can buy up to 16 shares at a time.
Choose Your Order Type
Learn these order types before you execute a trade.
Bid
The bid is the price at which you are willing to buy the shares. If Cronos trades at $6, you can set the bid price to $5.50 and the trade will execute if the stock price drops by $0.50.
Ask
The ask is the price at which you are willing to sell your shares. If Cronos is trading at $6, you can set the ask price to $6.50 and the trade will execute if the stock price rises by $0.50.
Spread
The spread is the difference between the bid and ask price of a stock. If Cronos trades at a bid price of $5.50 and an ask price of $6.50, the spread is $1.
Limit Order
A limit order lets you set a specific price for your trade. If the online broker is unable to find a buyer or seller who wants to trade at your specified price, the trade will not execute. This way, you can trade the stock at the price you want.
Market Order
You can buy or sell shares at the strike quote of the stock with a market order. The strike quote of the stock depends on the market and not on individual buyers and sellers. It's the fastest method of trading but you may not trade shares at your desired price.
Stop-Loss Order
You can cut your losses by executing a stop-loss order for your trades. If you set the stop value at $5, your shares will sell as soon as the stock quote drops to that price.
Stop-Limit Order
A stop-limit order combines stop and a limit order. You must assign 2 values for a stop-limit order. If Cronos trades at $6, you can assign the stop value to $5 and assign a limit value of $4. As soon as the strike price of Cronos drops to $4, your trade will turn into a sell market order immediately.
Execute Your Trade
Once you have decided on the order type and the number of shares you want to buy or sell, you can execute your order to have them fulfilled.
Cronos Stock History
Founded in 2012, Cronos Group is a global cannabinoid (CBD) company with several high-end cannabis brands under its umbrella.
In 2019, the tobacco company Altria (NYSE: MO) became the largest shareholder in Cronos. The multibillion-dollar deal made Altria the majority stakeholder with a 45% equity in the CBD stock. The low cost of Cronos and Altria's backing has made it one of the safest stocks under $20 to invest in.
Cronos Executive Chairman Mike Gorenstein recently announced that the cannabis group will create lab-grown cannabis products using biosynthesis. This move bumped CRON up as one of the major biotech stocks to watch.
In 2019, the tobacco company Altria (NYSE: MO) became the largest shareholder in Cronos. The multibillion-dollar deal made Altria the majority stakeholder with a 45% equity in the CBD stock. The low cost of Cronos and its potential for growth could make it one of the best stocks under $20 for your portfolio.
Pros to Buying Cronos Stock
Take a look at some of the benefits of investing in Cronos.
1. Legalization pushes
Many states in the United States have legalized medicinal or recreational marijuana in 2021. But cannabinoids are still illegal federally. However, a recent push from senators Chuck Schumer, Cory Booker and Ron Wyden prioritizes the federal legalization of marijuana. They plan to introduce a legistliative package soon meant to reach this goal by the end of 2021.
This renewed legislative attention, plus mostly positive public support for full cannabis legalization, means cannabinoid companies may soon see the legal barriers holding them back from explosive growth removed.
2. Strong, positive cash flow
Cronos delivers its cannabis products directly to consumers and operates a cash-based business that generates millions in revenue.
The cannabis stock has a quarterly cash burn rate of about $43 million. Cronos can run its operations in full swing for another 11.5 years.
3. Global CBD stock presence
A company with a global footprint, Cronos has a worldwide network of partnerships, joint ventures, production and distribution across 5 continents.
Headquartered in Toronto, Cronos has a corporate office and client care facility in Canada’s economic epicenter. Its Redwood brand is focuses on the U.S. market. Cronos has a research center, cannabis nursery, greenhouse and manufacturing facility in Israel. It also distributes its CBD products to Australia, Colombia, Germany and Poland.
4. Strategic decisions
Cronos made huge investments in 2019 and its financial impact is yet to be completely realized. Cronos opened a brand new research center, Cronos Device Labs, in Israel, primarily focused on developing vaporizer products designed for CBD.
The cannabis company acquired 84,000 square feet of fermentation and manufacturing facility in Winnipeg, Canada. Cronos also acquired 4 Redhood Holding Group, LLC subsidiaries to expand its presence in the U.S.
5. High liquidity
The CBD company trades an average of 6.5 million shares per day. The high liquidity of the stock makes it a good investment. You can find buyers and sellers of Cronos shares in the market.
Cons to Buying Cronos Stock
Take a look at some of the drawbacks of investing in Cronos.
1. Cannabis is not legal in all states.
The sale of marijuana is prohibited in most countries around the globe. Its use and possession are still illegal in many states in the U.S. The medicinal use of marijuana is legal in 34 states and recreational use is legal in 11 states. These restrictive policies have severely staggered exponential growth opportunities for Cronos.
2. Cronos does not pay dividends.
If you’re looking at long-term investments, you might want to park your money with a CBD stock that pays regular dividends to its shareholders.
Innovative Industrial Properties Inc. (NYSE: IIPR) is a real estate investment trust (REIT) that has invested in cannabis-producing facilities in the U.S. It has an annual dividend yield of 2.34%. Scott Miracle-Gro (NYSE: SMG) manufactures and sells cannabis growing equipment. It has an annual dividend yield of 1.05%. Cronos has no plans to issue dividends in the near future.
Right Time to Invest in Cronos?
In less than 9 years, Cronos has made a name for itself in the cannabis industry. Its high-quality products are widely used by customers for medical and recreational needs. With its recent foray into biosynthesizing cannabis and the moves toward federal cannabis legalization, it's a stock to keep an eye on. You can consider investing in Cronos to elevate your stock portfolio with higher earnings.