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Cronos Group Trading forecasts and signals

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Unpromising stocks in 2022
Cronos Group, stock, Unpromising stocks in 2022 The coronavirus is gradually letting go of its grip, and the world's banks are ready to do a lot to stop raging inflation. That is why 2022 will be a very interesting year for the world economy. In this situation, some companies will continue to grow, others will simply lie low to wait out difficult times. There are also businesses that will become much less successful than in previous years. We will talk about the latter further.Inovio PharmaceuticalsThis is a fairly large biotech company specializing in the development of DNA-based vaccines for various types of diseases. At one time, this company was among the leaders among those who developed a coronavirus vaccination. Since 2020, Inovio Pharmaceuticals has not achieved any significant results. In addition, the company's securities are now at pre-pandemic levels.Despite the fact that the company's results in this area of activity are difficult to call even modest, it still hopes to become favorites by working on another version of the covid vaccine. Today, the third stage of testing is underway, and the results will be published in the first half of 2022.If the biotech company can still create a new drug, it plans to enter the markets of third countries of the world with it, that is, where Pfizer and Moderna have not yet reached. Is it possible to plan investments in this concern?Experts say it's not worth it. First of all, the company must prove the effectiveness of the drug, and its compliance with the existing ones. In addition, the company is likely to have delays in the release of funds due to the pickiness of the regulator. That is, those vaccines that were quickly released in 2020 due to the huge demand for them passed a fairly quick check and were immediately released into circulation. Today it will not be so easy to get the approval of the regulator.The demand for the drug in the world is no longer so high, since it is partially satisfied, and the regulator will meticulously test the vaccine for compliance. In addition, given that the pandemic is gradually subsiding, and by the end of the year the demand for the vaccine may be minimal. This will be an incentive to stop the testing process. The company will close the project altogether without achieving anything.In addition to this development, the company is engaged in research in other areas, but no project is scheduled for release in 2022. However, in addition to all of the above, the company does not have a single drug, even previously released. Research will not bring profit.All these factors make the company's situation extremely unstable, and investors do not like this state of affairs. Today it is doubtful that anyone will decide to invest in the unknown.Cronos GroupA Canadian concern specializing in the production of cannabis products. Recently, the company has not been receiving serious attention from investors, and there is an explanation for this. In the autumn of 2021, Cronos Group asked the regulator for a delay in submitting reports for 3Q due to the need to calculate profits and losses.Investors did not like this situation at all, and they turned away from the company, leaving it no chance. The situation could be radically opposite if the company showed positive reporting as a result of the report. But this did not happen, and investors finally abandoned the prospects of investing in the development of the company.I must say that the company does not show excellent results in terms of finances either. As of Q2 2021, the company's revenue amounted to 15.6 million Canadian dollars, and this is 58% more than in the same period of the previous year. At the same time, the gross loss increased several times. If in the 2nd quarter of 2020 the indicator was within 3 million dollars, then a year later it amounted to 15.8 million dollars.Regarding the option loss, it is worth noting that it has increased to 60.2 million Canadian dollars, and this is 2 times more than last year's figure. Net profit reached 56.8 million Canadian dollars and was formed by non-monetary income of the enterprise, which is not related to the main business in any way.Even active cooperation with other companies did not stimulate growth. So in 2018, one of the world's largest tobacco giants invested $2.4 billion in Cronos Group, thereby securing ownership of 45% of the company's assets. Such an impressive infusion in all indicators should have stimulated the growth of indicators, but even after three years it is not noticeable. To date, the company has not managed to reach a stable profit.In addition, the cannabis producer lags behind competitors in many ways. In fact, the business itself can be considered quite profitable and has impressive potential. It is likely that the company has a bright future, but not today. Now experts advise to avoid asset purchases.GameStopGameStop's assets were the pioneers of memes during the lockdown period. Several large investors, having conspired, simply pushed the paper of this company, which in a couple of days soared to unprecedented heights - by hundreds of dollars. However, even this step did not become a driving factor for the company, which continued to drown in losses. And by the end of 2021, investors' hopes were not fulfilled, assets collapsed by 15%. How appropriate are investments in this enterprise?With the last of their strength, the company's management is really trying to change everything for the better. First of all, I am transforming the business model, adapting it to market conditions. Today, the goal of becoming a multi-channel market seller focused on digital technologies is the foundation.The company will have to abandon the mass of retail outlets, now abruptly switching to digital services. The fact is that gamers have long since stopped buying games on real media, and are increasingly buying products online. So for 2019, the company had 5,500 branches opened worldwide, and as of 2021 – 4,600.For a speedy transformation, the company even changed its CEO, putting Ryan Cohen, one of the co–founders of Chewy, in this position. An interesting undertaking in the form of the release of consumer electronics and collectibles also inspires some hope.I must say that all these actions did not really stimulate the growth of the company's assets. The company can really become a worthy competitor in the game sales market, but it is unlikely to work with household appliances. There is too much competition in the world in this segment.Today, the company's business does not look so bad. All these are the consequences of an artificial jump in asset prices. For the three quarters of 2021, the issuer's revenue amounted to $3.8 billion, demonstrating an increase of 27% compared to Q3 2020. The loss amounted to $234 million.However, then revenue fell by 45% from 2017 to 2020. The complete absence of forecasts for the long-term period does not speak too positively in favor of the purchase of paper. That is, the company's management does not hint at anything like this. Accordingly, the future looks rather hazy. According to experts' forecasts, for the 4th quarter of 2021, revenue may show an increase of only 4%, and for 2022 it should show only 1%.The company is really trying to get out of the peak, but is it enough to change the leader and start producing household appliances? No! Today, the company makes every attempt to stay afloat. But will they succeed, or is it just the beginning of the end? In this regard, even a rather attractive P/E multiplier does not look interesting at ...
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