RE:RE:TargetTLRY (down 12%) and Cronos (down 8%) smacked today, weighing on sector. Companies like Cronos and Tilray certainly have deep pockets but, deep pockets or not, if the losses keep piling up, eventually investors cut loose. Will these companies be around next year? Most likely, yes. But negative sentiment will continue to weigh on companies, and their share price, with consistently poor results and lack of transparency. Many of these companies were founded, and operated by, bush league business people who weren't able to transition to the pros. If they're going to have a chance of prolonging the company's life, capable management is essential. Watch out for OGI, mid-tier, but the only consistently profitable LP to date, no layoffs, adequate cash reserves, and no management /accounting bs.
"Citing its inability to file its annual report with the SEC and the investigation around its revenue recognition practices, Stifel analyst lowered Cronos Inc.(CRON-T, CRON-Q) to “neutral” from “buy.”
He said the involvement of “outside counsel and forensic accountants” underscores the potential gravity of the situation, and feels the outlook for its shares is now difficult to analyze.
Mr. Carter cut his target to $8 from $12. The average is $12.66."