Cronos Group Inc. weekly uptrend opportunity based On 1.00 Lot Calculation:
- Cronos Group Inc. operates as a diversified and vertically integrated cannabis company. The Company offers production and distribution platforms of medical marijuana, as well as cultivates cannabis oil. Cronos Group serves customers in Canada. In general, Cronos has created a portfolio of cannabis brands that is seen success with Canadian cannabis consumers. In addition, Cronos announced it purchased options to acquire a 10.5% stake in PharmaCann for $110.4 million.
- EARNINGS: SECOND QUARTER 2021: Cronos missed earnings estimates on their second-quarter 2021 results. To highlight, the company produced net revenue of $15.6 million in Q2 2021 up by $5.7 million year over year. Cronos sustained a gross loss of $15.8 million in Q2 2021 increasing by $12.9 million year over year. The company attributes the loss to an increase in inventory write-downs in the ROW segment, which totaled $12 million in Q2 2021. As it stands, the company has an adjusted EBITDA loss of $49.8 million in Q2 an increase of $22.8 million from Q2 2020. The company is expected to announce its Q3 earnings results on January 5, 2022.
- CANNABIS INDUSTRY and POTENTIAL US LEGALIZATION IN 2022: Investors still hope that the US will soon legalize cannabis at a federal level, which could increase the market share of some cannabis companies such as Cronos Group. Just a few days ago, a Republican Indiana lawmaker who serves in House leadership has announced she will be introducing a bill to legalize marijuana for both recreational and medical use in the upcoming legislative session. The measure would legalize cannabis for adults 21 and older and set up a regulated system of sales. The first test for the bill will be getting a hearing in the House Public Policy Committee, where cannabis legislation has historically stalled.
- STOCK PRICE ACTION: The stock trades at the lowest since it started trading at the New York Stock Exchange in 2018. The stock is down 43% in 2021 and down around 85% from its all-time high of 25.00. By many technical parameters, the stock has been oversold.
- ANALYST OPINION: Bloomberg Analysts’ Consensus maintains a Price Target of $6.70, which would represent an increase of 73.57% from current price of $3.86.
Cronos Group Inc., (#CRONOS) December 29, 2021
Current Price: 3.86
|
Cronos |
Weekly |
|
Trend direction |
|
|
11.00 |
|
|
6.70 |
|
|
5.50 |
|
|
3.00 |
|
|
2.50 |
|
|
2.00 |
Example of calculation base on weekly trend direction for 1.00 Lot*
|
CRONOS |
||||||
|
Pivot Points |
||||||
|
Profit or loss in $ |
71,400.00 |
28,400.00 |
16,400.00 |
-8,600.00 |
-13,600.00 |
-18,600.00 |
|
Profit or loss in €** |
63,098.17 |
25,097.87 |
14,493.14 |
-7,600.06 |
-12,018.70 |
-16,437.34 |
|
Profit or loss in £** |
53,079.19 |
21,112.73 |
12,191.86 |
-6,393.29 |
-10,110.32 |
-13,827.35 |
|
Profit or loss in C$** |
91,436.27 |
36,369.61 |
21,002.17 |
-11,013.33 |
-17,416.43 |
-23,819.53 |
* 1.00 lot is equivalent of 10000 units
** Calculations for exchange rate used as of 13:47 (GMT) 29/12/2021
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.
*** You may wish to consider closing your position in profit, even if it is lower than suggested one
**** Trailing stop technique can protect the profit – Ask your Client Manager for more details