Why Cronos Group Is Overvalued Right Now
The majority of cannabis stocks have seen their shares plummet over the past few months, eradicating most of the earlier gains seen in the first quarter of 2019. While many of these companies have become viable investment opportunities now that they're trading at lower prices, there is still a handful of stocks I wouldn't recommend touching until they fall much further.
One of these companies is Cronos Group (NASDAQ: CRON). The company has recently overtaken Tilray (NASDAQ: TLRY) as the third-largest cannabis company by market cap, behind only Aurora Cannabis (NYSE: ACB) and Canopy Growth (NYSE: CGC).
The story behind Cronos Group, which is worth $4.04 billion right now, is one that reflects the investor overexcitement surrounding the cannabis sector ahead of Canada's legalization last year. Back in 2018, Cronos Group had reached such a high valuation that it was seen as overpriced even by industry experts who were otherwise highly optimistic about the cannabis industry's growth potential.
Source Fool.com
