Why Cronos Group, TimkenSteel, and Chesapeake Energy Slumped Today
Wall Street didn't see a lot of action on Veterans Day, with subdued levels of trading and a relative lack of big news items. Major benchmarks were mixed, and it looked apparent that most investors were waiting until after the holiday to make firmer commitments in their investing strategies. Yet some individual stocks still suffered considerable declines. Cronos Group (NASDAQ: CRON), TimkenSteel (NYSE: TMST), and Chesapeake Energy (NYSE: CHK) were among the worst performers. Here's why they did so poorly.
Shares of Cronos Group dropped 5% as investors in the marijuana company got ready for the release of its third-quarter financial results. Expectations are high for Cronos, with shareholders wanting to see sales nearly quadruple from year-ago levels. Yet with the stock down more than 60% since February, Cronos will have to answer questions about its long-term strategic vision, especially as it relates to the major investment that tobacco giant Altria Group has made in the cannabis company. If Cronos can deliver unexpectedly good performance, then its stock could mount a nice comeback from its big losses lately.
Image source: Cronos Group.
Source Fool.com
