Cronos Stock Plunges 30% After Citron Short Call, Report of Trump Anti-Marijuana Effort

Cronos Stock Plunges 30% After Citron Short Call, Report of Trump Anti-Marijuana Effort

August ends on a sour note for Canada-based cannabis stocks.

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August 31, 2018

Cannabis stocks dropped Thursday after famed short-seller Andrew Left’s Citron Research published a “reality check” for Canada-based weed company Cronos Group Inc. and the rest of the sector and a new report detailed a federal effort to fight marijuana legalization.

Cronos CRON, +0.11%  stock fell roughly 29% in Thursday trading, as Canada-based rivals Tilray Inc. TLRY, +1.34%  slid 6.4%, and Canopy Growth Corp.CGC, +0.72%  fell 3.8%. The S&P 500 index SPX, -0.44%  was down 0.1% Thursday.

Cannabis stocks have rampaged in recent days — described by one investor as similar to a bitcoin BTCUSD, -0.06%  surge — after a flurry of news related to beverage-company interest in weed: After Corona-maker Constellation Brands Inc. STZ, -0.24%  announced a $4 billion investment in Canopya report said that Smirnoff-maker Diageo PLC DEO, -0.46%  was eyeing a similar investment or partnership in three other Canadian pot firms.

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Top photo courtesy of Adobe Stock