Diamonds and Dogs
Cannabis stocks rebounding today. Canada's Cronos Corp (CRON) is up 24% on news tobacco company, Altria agreed to take a major stake in the company and become its exclusive partner in the cannabis sector as new markets for medical and recreational weed open around the world. The news sparked a rally in the broader sector, which has been expecting moves by big tobacco, given the overlap of growing and harvesting with the burgeoning weed industry. Altria is investing C$2.4 billion ($1.8 billion) to acquire a 45% stake in Cronos and will also receive warrants that, if exercised, would increase that stake to 55% and give Cronos another C$1.4 billion in proceeds.
Another ugly day for the broader market. The big banks are making new 52 week lows. Big Lots (BIG) not so big down 23% following earnings. Lululemon (LULU) a little sour down 11% following earnings. Vail Resorts (MTN) is down 19% to a seven month low ahead of their strongest quarter of the year. Vail reported a revenue decrease giving investors short-term concerns that season ski passes are off to a slow start for the 2018-19 winter season. With all the cold weather you would think this would be a great start to the season.