Canadian Cannabis Company Cronos Sees Profits Skyrocket
The value of cannabis stocks, like most stocks, are uncertain and anyone investing certainly needs to do their due diligence before dumping too much money into any one stock. Even after extensive due diligence into any one particular company, it is wise to diversify. Those looking into marijuana stocks certainly need to do their homework as any burgeoning industry can be volatile, but cannabis companies are especially tied to political developments that can change quickly. One good sign for Cronos Group, and its investors, is that the Canadian cannabis company has seen its second-quarter gross profits surged 466% significantly, but there are still some mixed numbers, as the Motley Fool reported:
Investors love impressive growth numbers. Cronos Group (NASDAQ:CRON) certainly had several of them to report in its second-quarter update announced before the market opened on Tuesday. The Canadian marijuana grower’s Q1 results in May were mixed, but this time around Cronos had mainly good news.
The most spectacular growth reported by Cronos Group in Q2 was its fantastic 466% year-over-year increase in gross profit. But as great as its gross profit improvement was, there were five more important things you’ll want to know from the company’s Q2 update.
1. Revenue skyrocketed for three great reasons
2. Net income more than quadrupled — but with a catch
3. Improved liquidity
4. Weaker cash flow
5. Expansion on schedule
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Overall, Cronos Group’s Q2 performance was quite good. It also hints at why Cronos stock is up 250% over the last 12 months.
Head on over to the Motley Fool for their full breakdown of Cronos Group’s latest numbers. It makes sense that Cronos and other Canadian cannabis companies will see their profits rise after the country legalizes for all adults after October 17th, but, as usual, buyer beware, but great risks often provide great opportunities as well.
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