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Cannabis Stocks Could Rise On Cronos Quarterly Report

Summary

Shares in Canadian cannabis producers are trading mixed this Tuesday as the market awaits Cronos Group’s Q4 2018 report.

In the run-up to the release of Cronos’s final quarterly report for 2018, the company’s shares are rising and currently lead their sector, which would suggest that investors are anticipating positive results from the Canadian firm.

Still, the market’s growth has been somewhat restrained following reports that New Jersey has postponed a crucial vote on cannabis legalisation. The Garden State is at the forefront of the charge for legalisation in the US and is thus regarded as a barometer of the movement’s overall momentum.

Canopy Growth’s (OTC:CGC) shares are not faring particularly well this week despite the announcement that the company has been granted a license by the Canadian government to cultivate cannabis in the province of New Brunswick. The producer plans to grow approximately 5,000 kg of cannabis a year at this new facility, with the first harvest expected in just six months’ time.

Our financial scouts believe that future share movements in this sector will be largely determined by Cronos’s financial results. If they reveal strong indicators, then the company’s share price could reach $21-21.5, while Aphria’s (OTC:APHA) could rise to $10. Meanwhile, shares in Aurora Cannabis (OTC:ACB) could hit $10.5, with Canopy Growth and Tilray similarly rising to $44.5-45 and $68-68.5 respectively.