Cronos Group Inc. (Nasdaq: CRON) is a remarkable holding company based in Toronto but listed on the Nasdaq – in fact, earning the distinction of becoming the first Nasdaq-listed pot company earlier this year. (Most of the rest are still toiling away on the Pink Sheets – a tough place for a little company to get traction in the public markets.)
It’s not the biggest pot company in the world. At $1.56 billion, it’s not even the biggest one in Canada.
And it isn’t tiptoeing around the edges with picks and shovels…
It’s down there in the mud with the growers, where the serious profits will be when demand explodes overnight this summer.
And its production capacity is expanding FAST.
Cronos’ main facility Peace Naturals is situated on 95 acres in Ontario, where it’s just completed upgrades to buildings and has confirmed it’s on track to complete a massive new building. It also works out of British Columbia through its subsidiary Original BC, which has 31 gorgeous acres.
Medical marijuana, smokeables, oils, they’ve got it all.
Total projected annual capacity is 40,000 kg by 2019.
But it’s Cronos’ clear plans for global domination that earned it the title in my book.
- Owning the German Pharmaceutical Circuit: Cronos already has an exclusive five-year supply agreement through G. Pohl-Boskamp to its 12,000 pharmacies across Germany – currently the largest legal cannabis market in the world. This company has been around since 1835 and is a major force in Europe. Look for this partnership to expand.
- MedMen Canada: They’ve joined forces with the largest retail cannabis chain in California, called MedMen, to open stores and launch co-branded products across Canada. This looks like a very keen move. Speed will be key when Canada fires the starting pistol. Why not leverage the experience of someone who’s just pulled it off?
- Cronos Israel: It’s solidified a joint venture with an established Israeli agri-collective to produce and distribute medical cannabis. The climate there is favorable, the workforce is skilled… and its partner already exports to 35 countries in Europe and Asia.
- Cronos Australia: They own a 50% interest in a Down Under JV. First up: Construction plans for a 20,000-sq.-ft. indoor facility capable of producing 2,000 kg every year.
Besides making friends in all the right places, Cronos is gobbling up strategic acquisitions.
It owns 21.5% of Whistler Medical Marijuana Co. (WMMC), a British Columbia-based grower and vendor that prides itself on organic production. Whistler also sells live plants and “strain starter kits” for $750 each. Additionally, Cronos owns 6% of ABcann Global Corp. (OTC: ABCCF), a medical-grade grower in Ontario, and 2% of Hydropothecary Corp. (OTC: HYYDF), which remains the ONLY firm authorized to produce cannabis in the province of Quebec.
Monopoly is a beautiful thing.
Now, Cronos is a good balance of “safe” and “diversified.” If you buy now and hold, I think you'll do very, very well on the cannabis boom. My initial projections put this $6 stock at around $10/share by the end of 2018 and $17.50 by 2020.
But if you don't want to wait…
Video: This $0.16 Marijuana Stock Set to Soar by October 1st
Top tech expert Ray Blanco is recommending to go all penny stocks, all the way.
There’s an implicit advantage to this approach for us “little guys.” Big investment firms really can’t trade these stocks. They’re simply too small. So penny stock companies in the pot business are underreported and off-the-radar. There are some absolute gems in the biotech space, and a few that could become the next big retailer of pot.
Here’s what’s really appealing about this approach…
It's identified a handful of very strong contenders trading at insanely cheap prices, both from the U.S. exchanges and Toronto. Including a 16-center you'll find very interesting.
In fact, Blanco has stated that he believes a single $50 stake in select tiny stocks can turn into a massive fortune from the legalization boom.
If that kind of high-risk, high-reward approach resonates with you, check out his video presentation here:
The Secret “$50 Marijuana Stock Blueprint”
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