APHA - Cronos: The Most Confusing Cannabis Stock

• We continue to be perplexed by the elevated valuation of Cronos; its 32x EV/Sales is difficult to be justified based on fundamentals.
• It reported $47M revenue and $147M negative EBITDA for 2020 which we view as the weakest among the top 10 Canadian LPs.
• We see no appeal in Cronos shares and believe investors have much better options from both Canadian and U.S. cannabis stocks.

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