Friday , 23 October 2020

Cannabis Central: 2 Steps Forward (April & May); 1 Step Back (June)

A month ago I wrote that, with the non-penny cannabis stock sector advancing significantly for 2 months in a row (+11% in April and +25.3% in May), it might well be suggesting that the sector had finally hit bottom at the end of March but the -8.0% performance in June shows it to be a “2 steps forward and 1 step back” situation.

By Lorimer Wilson, managing editor of munKNEE.comYour financial site for sore eyes and inquisitive minds.

Below is the June performance of the constituents of the equally-weighted Non-penny Pot Stock Index (NPSI) of 25 pure-play cannabis stocks within each of the 3 categories that represent their primary area of focus in the cannabis industry.

1. The Vertically Integrated “Seed-to-Sale” Category consists of companies that grow, process, and sell cannabis and hemp flower and related products.

  • 8 companies are Canadian Licensed Producers (LPs) and they declined 11.0%, on average, in June on the heels of a 24.4% increase in May and a 4.7% increase in April.
    • The constituents’ performances, in declining order, were as follows:
      1. Rubicon (ROMJF) +9.3%;
      2. Aphria (APHA) +1.4%;
      3. Canopy Growth (CGC) -7.0%;
      4. Cronos (CRON) -8.0%;
      5. Organigram (OGI) -10.3%;
      6. Aurora (ACB) -11.8%;
      7. Village Farms (VFF) -11.9% and
      8. Tilray (TLRY) -27.8%
  • 11 companies are American Multi-State Operators (MSOs) growing and marketing THC and/or CBD from cannabis and they declined 5.1%, on average, in June on the heels of a 27.7% increase in May and a 13.7% increase in April.
    • The constituents’ performances in declining order were as follows:
      1. Jushi (JUSHF) +24.8%;
      2. Planet 13 (PLNHF) +24.4%;
      3. Medicine Man (SHWZ) +12.0%;
      4. Curaleaf (CURLF) +3.0%;
      5. Trulieve (TCNNF) -1.6%;
      6. Green Thumb (GTBIF) -2.3%;
      7. Columbia (CCHWF) -8.6%;
      8. TerrAscend (TRSSF) -8.6%;
      9. AYR (AYRSF) -15.3%;
      10. Cresco (CRLBF) -16.3%;
      11. Acreage (ACRGF) -22.4%
  • 3 companies are MSOs that exclusively grow and sell CBD from hemp and they declined 15.4%, on average, in June on the heels of a 20.5% increase in May and a 13.9% increase in April
    • The constituents’ performances, in declining order, were as follows:
      1. cbdMD (YCBD) +29.9%
      2. Avicanna (AVCNF) -10.5%
      3. Charlotte’s Web (CWBHF) -29.0%

The Vertically Integrated Category, in total, declined 8.7%, on average, in June on the heels of a 25.6% increase in May and a 9.1% increase in April.

2. The Extraction Category consists of companies focused on the extraction of cannabis compounds and their infusion into consumer products.

  • The 2 companies in this category declined 6.9%, on average, in June on the heels of a 31.9% increase in May and a 28.2% increase in April.
    • The constituents’ performances, in declining order, were as follows:
      1. Neptune (NEPT) -6.0%
      2. Valens (VLNCF) -8.2%

3. The Consumption Devices Category consists of companies focused on developing and selling personal consumption devices for cannabis consumers such as vape pens and inhalers.

  • Only 1 company is in this category, namely Greenlane (GNLN), and it advanced 15.7% in June, on the heels of a 7.5% increase in May and an 86.0% increase in April.

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