Don't Buy Cronos Group Stock Until You See This

Marijuana companies are popular for one obvious reason: The market for marijuana is one the quickest growing markets in the world, sporting a compound annual growth rate (CAGR) of 28.02% between 2020 and 2025. In recent years, popular Canadian pot companies have started to capitalize on the U.S. cannabis market, which is expected to grow at its own CAGR of 17% until 2025, according to New Frontier Data. Although marijuana is still a Schedule 1 drug under U.S. federal law, which is defined as a drug, substance, or chemical with no currently accepted medical use and a high potential for abuse, Canadian companies are hoping to expand consumer bases in U.S. state markets where marijuana is legal.

Toronto-based Cronos Group (NASDAQ: CRON) is one company extending its reach. Its deal with the maker of Marlboro and Black & Mild brands, Altria Group (NYSE: MO), fascinated investors last year. But is Cronos reaping real benefits from the deal? There are three things that investors should be aware of before buying this stock, which are inhibiting Cronos' growth.

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Source Fool.com