StockPursuit
Deep-Value Equity Research, Net-Nets, Thematic Long/Short, AI Observation & History Background
Cronos is one of the best value stocks because cash covers most of its market cap while operations improve. Its $827 million of cash is 65% of a $1.27 billion market cap, the industry's best balance sheet, with net tangible assets of $1.05 billion. Q2 revenue rose 51% in constant currency, gross margin reached 53% from 43%, and it earned $0.09 a share with $0.06 of free cash flow per share. GrowCo is fully online with more efficiency gains expected, and buybacks continue. x.com
Cronos Group is one of the easiest longs in the market as higher-margin Israel and Germany sales lift gross profit without excise taxes. Q2 revenue rose 58% to $53M and adjusted EBITDA to $13.1M from $1.7M; gross profit nearly doubled. Spinach is Canada's #2 cannabis brand and #1 in edibles and vapes. CanAdelaar adds a leading Dutch adult-use pilot position at ~1.4x annualized revenue. Q2's $827M in cash, investments and deposits against $62M in liabilities and buybacks support per-share upside. … Show more
Cronos looks worth more than a below-liquidation valuation. A quoted post from a GrowCo site visit describes a large, professionally run operation and calls the JV partnership with the Mucci family, agriculture masters running it like a pharmaceutical lab, the most overlooked part of the thesis. x.com
