Cannabis Corner: Keep an eye on these industry stocks

Article Excerpt

Canada legalized cannabis over four years ago. While demand has been steady, stiff competition has cut selling prices significantly. Meanwhile, advertising restrictions and plain packaging rules make it hard to build brands that win customer loyalty. Still, we think some companies have a distinct edge—including their prospects for added sales in the U.S. as President Joe Biden stirs talk that the federal government could eventually decriminalize cannabis use. Those are the quality stocks we focus on in “Cannabis Corner.” CRONOS GROUP, $2.94 (Toronto symbol CRON; TSINetwork Rating: Speculative) (cronosgroup.com; Shares o/s: 381.1 million; Market cap: $1.1 billion; TSI Cannabis Quality Rating [CQR]: ) has now it shipped its first order of bulk cannabis to Germany. It will be sold under the Peace Naturals brand for the medical market—as well as for the expected upcoming legalized market of adult-use cannabis. In July, Cronos signed a distribution agreement with Cansativa Group, one of the leading distributors of medical cannabis in Germany. Cansativa has a network of…