Those shorting CRON are exposed to multiple risks, some of which I'll mention here. CRON could in fact report earnings which impress the market on August 8, causing the stock to trade up. Further, CRON's earnings might not impress the market, but updates on CRON's operations may impress the market causing the stock to trade up. Lastly, Canadian cannabis stocks have been trading down in recent months, but strong earnings results from other players in the space could lift the whole sector and hence CRON, even if CRON's own earnings are less impressive.
Interesting article about Cronos Group. I own a lot of shares in this one, even though I've been selling the out of the money covered calls on it. I spike in the stock price because of good earnings next week could result in lots of shares being called away from me. I'm willing to take that risk, as I probably own too many shares for my comfort level at this point. And the fact that Cronos broke the $14 support level is troubling to say the least. Long term I believe Cronos Group has too much cash and too many contacts with MO to just sit on their hands and do nothing. I believe they have to working on multiple major market moving news to create excitement again in this stock. We'll see.....
Read the full story here....
https://seekingalpha.com/article/4280026-cronos-look-competition-biosynthesis?dr=1
