Monday , 19 October 2020


Cannabis Central: Sector UP For 2nd Month Suggesting Turnaround Finally Happening

For the second month in a row the cannabis stock sector has advanced significantly (+10% in April and +19% in May) suggesting that the sector may have finally hit bottom at the end of March and is on the mend.

By Lorimer Wilson, editor of munKNEE.com – Your KEY To Making Money!

The above being said, however, the sector is still down an unbelievable 62% from its collective peak 12 months earlier, and is still marginally down (-3%) from the end of 2019. 35 of the 39 stocks (90%) in the Non-penny Pot Stock Index (NPIS) advanced during the past month compared to 83% in April.

Below is the performance of the constituents of the NPIS (which represent 13% of the universe of 298 companies) within each of the 9 categories that represent their primary area of focus in the cannabis industry in alphabetical order to allow for performance comparisons within similar areas of focus:

  1. Cultivation & Retail Category:
    • category consists of companies that grow and sell cannabis flower and related products.
    • The constituents within this category performed as follows (in alphabetical order) with the largest advancer and decliner in each category highlighted in bold type:
      1. Acreage Holdings Inc. (ACRGF)  +46.0%
      2. Alcanna Inc. (LQSIF) +15.3%
      3. Aphria Inc. (APHA) +17.8%
      4. Aurora Cannabis Inc. (ACB) +58.6%
      5. Canopy Growth Corporation (CGC) +8.6%
      6. Columbia Care Inc. (CCHWF) +56.4%
      7. Cronos Group Inc. (CRON) +9.9%
      8. Curaleaf Holdings Inc. (CURLF) +25.7%
      9. FSD Pharma Inc. (HUGE) – 8.9% (-14.0% in April)
      10. Green Thumb Industries Inc. (GTBIF) +42.4% 
      11. Harvest Health & Recreation Inc. (HRVSF) +3.7%
      12. MediPharm Labs Corp. (MEDIF) -7.1% (+25.9% in April)
      13. Organigram Holdings Inc. (OGI) +10.1%
      14. Planet 13 Holdings Inc. (PLNHF) +8.5%
      15. Rubicon Organics Inc. (ROMJF) +10.9%
      16. TerrAscend Corp. (TRSSF) +6.9%
      17. Tilray Inc. (TLRY) +22.4%
      18. Trulieve Cannabis Corp. (TCNNF) +22.8%
      19. Valens GroWorks Corp. (VLNCF) +18.3% 
    • The average price change was +22.5% vs.+10.9% in April
  2. Biotechnology Category:
    • category consists of pharmaceutical companies focused on R&D of new drugs and products utilizing cannabinoids.
    • The constituents within this category performed as follows:
      1. Abacus Health Products Inc. (ABAHF) +30.0%
      2. Avicanna Inc. (AVCNF) +3.9%
      3. Cara Therapeutics Inc. (CARA) +7.1%
      4. Corbus Pharmaceuticals Holdings Inc. (CRBP) +15.1%
      5. GW Pharmaceuticals Plc (GWPH) +22.6%
      6. Zynerba Pharmaceuticals Inc. (ZYNE) +35.9%
      7. XPhyto Therapeutics Corp. (XPHYF) -4.2%
    • The average price change was +20.4% vs.+13.0% in April
  3. Marijuana-Infused Products Category:
    • category consists of companies focused on developing and selling marijuana-infused products and companies focused on the extraction of cannabis compounds and their infusion into consumer products.
    • The constituents within this category performed as follows:
      1. Cresco Labs Inc. (CRLBF) +24.2%
      2. Neptune Wellness Solutions Inc. (NEPT)+42.6% (+78.6% in April)
      3. New Age Beverages Corporation (NBEV) +7.1%
    • The average price change was +26.1 vs.+34.7% in April
  4. Consumption Devices Category:
    • category consists of companies focused on developing and selling personal consumption devices for cannabis consumers such as vape pens and inhalers.
    • The constituents within this category performed as follows:
      1. AYR Strategies Inc. (AYRSF) +37.5% (-1.3% in April)
      2. Greenlane Holdings Inc. (GNLN) +7.5% (+86.0% in April)
      3. Pyxus International Inc. (PYX) +7.3% (-15.8% in April)
    • The average price change was +22.9% vs. +8.2% in April
  5. Agricultural Technology Category:
    • category consists of companies focused on providing automated growing systems, greenhouses, farming products, nutrients, hydroponics, fertilization systems, horticultural expertise, LED/lighting technologies, air filtration systems, and climate control and energy efficiency systems.
    • The constituents within this category performed as follows:
      1. GrowGeneration Corp. (GRWG) +40.6% (+23.4% in April)
      2. Village Farms International Inc. (VFF) +60.5% (+19.8% in April)
    • The average price change was +48.9% vs. +21.3% in April
  6. Real Estate Category:
    • category consists of investment companies and REITs that develop, own, and/or lease commercial real estate properties to licensed cannabis operators.
    • The only stock in this category eligible for the NPSI performed as follows:
      1. Innovative Industrial Properties Inc. (IIPR) +4.2%
  7. Business Services/Consulting Category:
    • category consists of companies that provide professional services such as branding, packaging, bottling, compliance, physical security, transportation, lab testing, distribution, and insurance. consulting and other business services directly to marijuana cultivators and retailers.
    • The only stock in this category eligible for the NPSI performed as follows:
      1. Medicine Man Technologies Inc. – now trading as Schwazze (SHWZ) -19.0% (+40.3% in April)
  8. Technology & Media Category:
    • category covers companies that provide delivery services, enterprise software, e-commerce platforms, communication and mapping services, and trading platforms and companies that provide marijuana-related media including news, content, social networks, games, and entertainment.
    • The only stock in this category eligible for the NPSI performed as follows:
      1. Akerna Corp. (KERN)+11.1% (+63.1% in April)
  9. Hemp Products Category:
    • category consists of companies that produce and sell hemp products.
    • The only stock in this category eligible for the NPSI performed as follows:
      1. Charlotte’s Web Holdings Inc. (CWBHF) +18.2%
      2. cbdMD Inc. (YCBD) +53.1% (+3.2% in April)

The NPSI no longer includes Hexo (HEXO) as its stock price has fallen below US$1/share, but it is worthy of mention and was +21.2% for the month.

Further details regarding the constituents of the new NPSI are as follows:

1. Price Range/Share

  • 2 trade above US$20/share,
  • 6 trade between US$10 and US$20/share,
  • 10 trade between US$5 and US$10/share and
  • 21 trade between US$1 and US$5/share. (The official definition of a “penny” stock is one that trades below US$5/share but, when it comes to pot stocks, that is where 87% of the total universe trades, so the more literal definition of stocks that trade for less than US$1/share is used.)

2. Market Cap/Constituent

The market capitalization makeup of the NPSI (calculated by multiplying the number of a company’s shares outstanding by its stock price per share, is as follows:

  • Large-Cap (+US$10B): 0
  • Mid-Cap (US$2B to US$10B): 3
  • Small-Cap (US$300M to US$2B): 13
  • Micro-Cap (US$50M to US$300M): 19
  • Nano-Cap (Less than US$50M): 4