Is Cresco Labs Stock in Trouble?
Cresco Labs (OTC: CRLBF) was likely expecting 2020 to be a strong year not just for itself but for the cannabis industry as a whole. With more states -- including its home base of Illinois -- allowing cannabis use, sales growth was supposed to soar. But while there will still be growth, it could prove to be underwhelming as people are losing their jobs as a result of the coronavirus pandemic, meaning they'll have less money to spend on marijuana.
A lack of growth could be a serious problem for Cresco, because it means cash may be scarce this year. Let's take a closer look at the company's financials to see whether it's in a good position to handle this adversity or if investors should consider selling their shares today.
The most recent results issued by Cresco came back in November, when it reported its third-quarter earnings. There, investors saw the company's cash balance, including its restricted cash, fall from about $94 million on Dec. 31, 2018, to just under $82 million on Sept. 30, 2019.
Source Fool.com
