USA|Why this pot stock was just crowned “King of the North”

Why this pot stock was just crowned “King of the North”

On October 18, research firm Stifel Financial Corp identified its new top cannabis pick. Stifel’s new report, titled “Crowning a New King of the North,” believes that this pot stock has the greatest ability to invest in the emerging $200 billion global cannabis opportunity. That’s a huge advantage given that most cannabis ETFs are down more than 50% from their 2019 highs. Those that can continue to invest can capitalize on industry-wide pain. As I wrote last week, “In a bear market, well-financed competitors often strengthen their businesses, because they can afford to expand and optimize while others are struggling to survive.” Even more dramatically, they can buy their fiercest competitors at bargain valuations. “No one likes a bear market,” I said, “but the strong not only survive, but also thrive when the downturn reverses.” That’s why Stifel’s top cannabis pick is none other than Cronos Group Inc (TSX:CRON)(NASDAQ:CRON). In a volatile market, Cronos has a huge advantage that its competitors simple don’t have. If you want to ride the next decade of marijuana growth, this is the stock for you. It’s getting harder You likely know that the pot industry is experiencing rapid growth. Many analysts expect the global market to more than quadruple in size over the next decade. Some estimates believe industry-wide sales could surpass $100 billion by 2030. What you may not know is that market gains won’t accrue to every company. In fact, only a handful of companies may ultimately benefit. That’s because regulation will reinvent the opportunity over the long term. Consider the tobacco market, another highly-regulated industry with varying rules depending on the specific country or region. The parallels between tobacco and pot shouldn’t be ignored, as they likely provides a template for how the market will unfold. Today, just four companies account for about 92% of U.S.…

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