After a long and challenging summer for cannabis-sector stockholders, investors were hoping for a recovery in Cronos Group stock. Then the bombshell news struck: on Sept. 11, the current presidential administration announced plans to ban flavored e-cigarettes in the wake of a lung-disease outbreak and at least six deaths.
With vaping being an integral part of the cannabis and CBD market, the legalized cannabis sector suffered and Cronos stock was no exception.
That begs the question of whether holders of CRON stock should panic-sell or take advantage of what could be an opportunity to buy low and, hopefully, sell at a higher price later.
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It only took a few trading days for Cronos Group stock to slide from $11.60 (I’ll be referring to the American version of the stock here) on Sept. 11 to slightly more than $10 per share. That’s pretty extensive damage to CRON stock, especially considering that there wasn’t been any particularly negative or damaging company-specific news during that time.
As I see it, this is simply overreactive, fear-based selling due to the vaping crackdown. InvestorPlace’s Josh Enomoto summed up my sentiment on the situation quite nicely:
In the nearer term, shares might be more volatile than usual. However, in the long run, I don’t see this impacting the company… It will take time for this issue to cool down. But once it does, CRON stock can get back to its business of growing cannabis in a fiscally sustainable manner.
No one is claiming that Cronos Group stock will immediately climb back to its all-time high, and the CRON stock price is likely to wobble and chop around as the vaping issue plays out in the media and the investing community. My thesis, really, is that the entire cannabis sector will stage a comeback and investors will remember what they shouldn’t have forgotten in the first place: CRON is one of the biggest and most respected companies in the cannabis industry.
For the time being, the current presidential administration is ultra-aggressive in its stance towards flavored e-cigarettes, with U.S. Health and Human Services Secretary Alex Azar declaring the administration’s intention to “clear the market of flavored e-cigarettes” to protect “children, families, schools and communities.”
The next thing you know, flavored e-cigarettes were being outlawed in San Francisco, Michigan, and Boulder, Colorado; Ray Lopez, the alderman of Chicago’s 15th ward, garnered some publicity for himself when he introduced an ordinance that would ban vaping products — all of them, not just the flavored variety — throughout Chicago.
And so, banning mania is in full swing and no one knows when it will end or how it will be resolved. We have to bear in mind, though, that CRON is headquartered in Toronto and Canada is undergoing what we might call Cannabis 2.0: The Next Phase of Legalization.
In mid-October, Health Canada will permit the sale of cannabis-infused edibles and beverages as well as vapes; these products could hit the shelves in Canada as soon as the middle of December. Regulators and lawmakers in the United States can fret and complain all they want, but they have no authority to prevent Canada’s Cannabis 2.0.
In any case, Cronos Group President and CEO Mike Gorenstein didn’t seem overly concerned when he spoke with Jim Cramer about the vaping controversy, as he insouciantly “noted that nicotine and cannabis are very different products and in Canada, cannabis vaping products are not yet allowed to be sold.”
If anything, the vaping crackdown should prove to be a temporary shock to the broader cannabis market and particularly to CRON stock. My favorite investing strategy is to wait for scares like this to pass; that’s the time to get in, hold on, and let the profits roll in.
As of this writing, David Moadel did not hold a position in any of the aforementioned securities.
这就引出了这样一个问题： CRON 股票的持有者是应该恐慌性抛售，还是应该利用什么机会低价买进，希望以后以更高的价格卖出。
Cronos Group 的股价仅用了几个交易日就从9月11日的11.60美元（我将在这里指美国版的股票）跌至略高于10美元的水平。这对 CRON 的股票造成了相当大的损害，尤其是考虑到在这段时间内没有任何特别负面或具有破坏性的公司新闻。
正如我所看到的，这只是由于打击贪腐的过度反应，基于恐惧的抛售。InvestorPlace 的 Josh Enomoto 很好地总结了我对形势的看法：
从短期来看，股票的波动性可能比平常更大。然而，从长远来看，我认为这不会影响公司…这个问题需要时间冷却下来。但一旦它这样做， CRON 的股票可以恢复其业务，以财政上可持续的方式种植大麻。
没有人声称克罗诺斯集团的股票会立即攀升到历史最高水平，随着媒体和投资界的大肆炒作， CRON 的股价可能会上下波动。我的论点是，整个大麻行业将会卷土重来，投资者会记住他们不应该忘记的第一点： CRON 是大麻行业最大、最受尊敬的公司之一。
目前，美国现任总统奥巴马政府对口味电子香烟的态度是极端激进的，美国卫生与公众服务部部长阿历克斯·阿扎尔( Alex Azar )宣布，政府打算“清理口味电子香烟市场”，以保护“儿童、家庭、学校和社区”。
你知道的下一件事是，调味电子香烟在旧金山、密歇根州和科罗拉多州的博尔德市被禁止使用；芝加哥第15区的地方官员雷·洛佩兹( Ray Lopez )在整个芝加哥推出了一项法令，禁止兜售所有的产品，而不仅仅是口味的产品。
因此，禁止狂躁是完全摇摆的，没有人知道它何时结束或如何解决。然而，我们必须记住， CRON 的总部设在多伦多和加拿大正在进行我们可能称为坎纳比斯2.0：下一个阶段的合法化。
无论如何， Cronos Group 总裁兼首席执行官 Mike Gorenstein 在与 Jim Cramer 谈到关于这场虚张声势的争论时似乎并不过分担心，因为他漫不经心地“指出尼古丁和大麻是非常不同的产品，在加拿大，大麻吸食产品还不允许销售。”
如果说有什么影响的话，这次打击应该被证明是对更广泛的大麻市场，特别是对 CRON 股票的暂时冲击。我最喜欢的投资策略是等待这样的恐慌过去；那是时候进入，坚持，让利润滚滚而来。
截至本文撰写之日， David Moadel 未持有上述任何证券的头寸。