Marijuana ETF (MJ) soars after report of merger talks between Cronos Group and Altria

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December 3, 2018 12:54pm NYSE:MJ

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From Tomi Kilgore: Shares of Cronos Group Inc. CRON, +12.02% shot up 24% in very active midday trade Monday.

Reuters reported that Altria Group Inc. MO, +1.51% was in early talks to buy the Canada-based cannabis company. Volume topped 16 million shares, compared with the full-day average of about 8.3 million shares. Reuters reported, citing people familiar with the matter, that Cronos has not agreed to any deal, and there is no certainty that it will agree to one. The talks between Cronos and Altria are expected to last for several weeks, Reuters reported. Cronos did not immediately respond to a request for comment. Last week, The Wall Street Journal reported that Altria was in talks to take a significant minority stake in e-cigarette company Juul Labs Inc. Shares of Marlboro parent Altria were up 0.9% in midday trade. Cronos’s stock has rallied 47% year to date, while the ETFMG Alternative Harvest ETF MJ, +1.53% has lost 6.6% and the S&P 500 SPX, +0.85%has gained 4.0%.

The ETFMG Alternative Harvest ETF (MJ) was trading at $30.42 per share on Monday afternoon, up $1.06 (+3.61%). Year-to-date, MJ has declined -6.47%, versus a 4.78% rise in the benchmark S&P 500 index during the same period.

MJ currently has an ETF Daily News SMART Grade of C (Neutral), and is ranked #59 of 75 ETFs in the Global Equities ETFs category.

This article is brought to you courtesy of MarketWatch.

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