Cronos Group Inc (NASDAQ: CRON) is having an overwhelmingly strong day in the market today. However, the company hasn’t issued any press releases or SEC filings. Nonetheless, there’s a very good reason for the gains. Today, we’ll talk about:
- The takeover rumors;
- what we’re seeing from CRON stock as a result; and
- what we’ll be watching for ahead.
CRON Gains On Takeover Rumors
As mentioned above, Cronos is having a strong day in the market today, but hasn’t released any news. So, what’s the deal? Well, it all seems to circle around takeover chatter.
Various reports are starting to pop up that Altria, the maker of Marlboro cigarettes, is interested in taking over the company. The rumors suggests that the move will allow Altria to diversify its business beyond traditional smokers.
According to the sources, CRON has not agreed to the any deal as of yet and there is no certainty that a deal will take place. Nonetheless, discussions between the two companies are expected to last for weeks.
While the story first surfaced on CNBC, it’s important to remember that it’s still a rumor. At the end of the day, rumors are one of the most common forms of market manipulation today. Without confirmation from Altria or CRON, there is no assurance that these discussions are even actually happening, let alone that it will lead to a deal. Nonetheless, the rumor is exciting investors.
What We’re Seeing From The Stock
One of the first lessons that we learn when we start to work in the market is that the news leads to moves. When it comes to Cronos, while the company didn’t release any news of its own, the rumors are definitely exciting investors. This can be seen from the strong gains that we’re seeing on the stock today. As is normally the case, our partners at Trade Ideas were the first to alert us to the gains. Currently (12:14), CRON is trading at $10.72 per share after a gain of $1.57 per share or 17.16% thus far today.
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What We’ll Be Watching For Ahead
Moving forward, the iWatch Markets team will continue to keep a close eye on CRON. In particular, we’re interested in following the story surrounding the potential acquisition of the company by Altria. While the rumors are just rumors at the moment, they surfaced on a highly trusted publication, so there may be some validity here. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!
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