MO - Here's Why Cronos Still Isn't a Buy Despite Posting a Profit and Boasting $1 Billion in Cash
Cannabis investors sometimes have to take earnings results with a grain of salt. Relying just on sales and net income figures can lead to incorrect conclusions. And in an industry as dangerous and risky as this one, investors need to exercise caution.
Marijuana producer Cronos (NASDAQ: CRON), for instance, is coming off a quarter in which it recorded a strong profit, and it has a significant amount of cash on its books. But a closer look at the company's results highlights some serious concerns about why investors shouldn't be rushing out to buy shares of Cronos.
Cronos has recorded a positive net income figure in each of its past five quarterly results. It's been remarkably consistent in producing a profit, and normally, that would make the stock an attractive buy. But those results have been skewed by other income amounts that propelled the company from the red into the black.