Why I'm Short Cronos Despite Altria's Investment

About: Cronos Group Inc. (CRON), Includes: ACB, APHA, CGC, HEXO, MO, TLRY
by: Amit Ghate
This article is exclusive for subscribers.
Amit Ghate
Long/short equity, value

CRON's stock price has been surging ever since the Altria investment.

I believe that the move is overdone as relative valuations have become extreme.

Moreover, due to its relatively meager provincial sales agreements, I forecast that CRON's revenues will continue to lag its peers.

I'm short the stock as a result.

As those who follow me know, I'm short Tilray (TLRY) from quite a bit higher for reasons elucidated in this article. Today I'd like to explain why I'm now also short a