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Dec 07, 2018
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Altria (MO, $54.40) Is Investing $1.8 Billion for 45% Stake in Cannabis Firm Cronos

Altria (MO, $54.40) Is Investing $1.8 Billion for 45% Stake in Cannabis Firm Cronos

 It’s official. Tobacco/cigarette company Altria is investing in Canadian cannabis firm Cronos Group. Altria will buy a 45% stake in the company at  $1.8 billion, and would have the option to raise its stake to 55%. Even before Friday’s announcement from Altria, there were reports of Altria possibly eyeing Cronos.

"Investing in Cronos Group as our exclusive partner in the emerging global cannabis category represents an exciting new growth opportunity for Altria," said Howard Willard, Altria's CEO, in a statement.

Cigarette smoking is reportedly thinning out probably due to increased health-consciousness among consumers – something that might be an additional reason behind Altria's decision to diversify into the recreational marijuana space.

Altria also announced plans to stop producing its MarkTen and Green Smoke e-cigarettes and its Verve oral nicotine, citing regulatory concerns and financial performance of the brands.

Related Ticker: MO

Contributor

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.


MO's RSI Oscillator leaves overbought zone

The 10-day RSI Indicator for MO moved out of overbought territory on November 02, 2026. This could be a sign that the stock is shifting from an upward trend to a downward trend. Traders may want to look at selling the stock or buying put options. Tickeron's A.I.dvisor looked at 44 instances where the indicator moved out of the overbought zone. In 24 of the 44 cases the stock moved lower in the days that followed. This puts the odds of a move down at 55%.

Price Prediction Chart

Technical Analysis (Indicators)

Bearish Trend Analysis

The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 34 of 64 cases where MO's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 53%.

The Moving Average Convergence Divergence Histogram (MACD) for MO turned negative on November 09, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 46 similar instances when the indicator turned negative. In 22 of the 46 cases the stock turned lower in the days that followed. This puts the odds of success at 48%.

Following a 3-day decline, the stock is projected to fall further. Considering past instances where MO declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 35%.

MO broke above its upper Bollinger Band on October 29, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.

Bullish Trend Analysis

The Momentum Indicator moved above the 0 level on October 29, 2026. You may want to consider a long position or call options on MO as a result. In 56 of 81 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are 69%.

Following a +6.91% 3-day Advance, the price is estimated to grow further. Considering data from situations where MO advanced for three days, in 220 of 387 cases, the price rose further within the following month. The odds of a continued upward trend are 57%.

The Aroon Indicator entered an Uptrend today. In 132 of 292 cases where MO Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are 45%.

Fundamental Analysis (Ratings)

The Tickeron Profit vs. Risk Rating rating for this company is 3 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 70, placing this stock better than average.

The Tickeron Valuation Rating of 8 (best 1 - 100 worst) indicates that the company is seriously undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: MO's P/B Ratio (-47.639) is very low in comparison to the industry average of (-7.297). P/E Ratio (16.025) is within average values for comparable stocks, (12.512). Projected Growth (PEG Ratio) (2.649) is also within normal values, averaging (3.595). Dividend Yield (0.058) settles around the average of (0.060) among similar stocks. MO's P/S Ratio (5.744) is slightly higher than the industry average of (2.780).

The Tickeron SMR rating for this company is 8 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.

The Tickeron PE Growth Rating for this company is 10 (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.

The Tickeron Price Growth Rating for this company is 23 (best 1 - 100 worst), indicating outstanding price growth. MO’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.

The Tickeron Seasonality Score of 50 (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.

Notable companies

The most notable companies in this group are Philip Morris International (NYSE:PM), Altria Group (NYSE:MO).

Industry description

The industry is engaged in the growth, preparation for sale, advertisement, and distribution of tobacco and tobacco-related products like cigarettes. In 2017, tobacco companies spent an estimated $9.36 billion marketing cigarettes and smokeless tobacco in the U.S. – an amount that translates to more than $25 million each day (according to a CDC report). Philip Morris International Inc., Altria Group Inc., and British American Tobacco plc are some major cigar makers. In recent times, vaping or the use of e-cigarette (does not burn tobacco) is gaining momentum – several established cigarette makers are trying to expand their footprint in this new market.

Market Cap

The average market capitalization across the Tobacco Industry is 57.21B. The market cap for tickers in the group ranges from 99 to 308.42B. PM holds the highest valuation in this group at 308.42B. The lowest valued company is AHII at 99.

High and low price notable news

The average weekly price growth across all stocks in the Tobacco Industry was -6%. For the same Industry, the average monthly price growth was -9%, and the average quarterly price growth was -27%. ISPR experienced the highest price growth at 9%, while XXII experienced the biggest fall at -49%.

Volume

The average weekly volume growth across all stocks in the Tobacco Industry was -11%. For the same stocks of the Industry, the average monthly volume growth was 4% and the average quarterly volume growth was -25%

Fundamental Analysis Ratings

The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows

Valuation Rating: 40
P/E Growth Rating: 50
Price Growth Rating: 61
SMR Rating: 73
Profit Risk Rating: 69
Seasonality Score: 44 (-100 ... +100)
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General Information

a holding company which produces and markets tobacco products

Industry Tobacco

Industry
Tobacco
Address
6601 West Broad Street
Phone
+1 804 274-2200
Employees
5900
Web
https://www.altria.com
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Altria (MO, $54.40) Is Investing $1.8 Billion for 45% Stake in Cannabis Firm Cronos