Wednesday , 21 October 2020


Most Pot Stocks Went UP in April – Is the Bottom In?

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Despite the volatility in the cannabis sector this past month its components did extremely well in April advancing by 10.8% with the Non-Penny Pot Stock Index (NPSI) slightly outperforming the overall sector with a 11.3% return.

By Lorimer Wilson, editor of munKNEE.com (This complete paragraph must be included in any re-posting to avoid copyright infringement.}

The NPSI tracks the performance of the 35 cannabis stocks that trade for a minimum of US$1/share (representing 12% of the universe of 298 companies). Below are the details of the returns of each constituent  within each of the 9 categories that represent their primary area of focus in the cannabis industry.

Before proceeding let’s put things in perspective:

  1. Of the 35 eligible stocks in the NPSI,
    • 29 (83%) went UP in April,
    • 6 (17%) went DOWN and
    • the average price change was +11.3%;
  2. the average return for the 2 broadest tracking indexes for the industry as a whole was +10.8% and
  3. the average return for the 4 marijuana ETFs that make up the broadest range of pot stocks was +9.5%.

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

1. Price Range/Share

  • 2 trade above US$20/share,
  • 3 trade between US$10 and US$20/share,
  • 6 trade between US$5 and US$10/share and
  • 24 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 88% 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): 11
  • Micro-Cap (US$50M to US$300M): 17
  • Nano-Cap (Less than US$50M): 4

The performance of the NPSI constituents are presented below within each of the 9 categories 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:
      1. Acreage Holdings Inc. (ACRGF)  -7.3%
      2. Alcanna Inc. (LQSIF) +10.0%
      3. Aphria Inc. (APHA) +17.3%
      4. Canopy Growth Corporation (CGC) +11.0%
      5. Columbia Care Inc. (CCHWF) +0.6%
      6. Cronos Group Inc. (CRON) +4.8%
      7. Curaleaf Holdings Inc. (CURLF) +19.8%
      8. FSD Pharma Inc. (HUGE) -14.0%
      9. Green Thumb Industries Inc. (GTBIF) +23.5% 
      10. MediPharm Labs Corp. (MEDIF) +25.9%
      11. Organigram Holdings Inc. (OGI) -21.0%
      12. Planet 13 Holdings Inc. (PLNHF) +15.8%
      13. Rubicon Organics Inc. (ROMJF) +47.3%
      14. TerrAscend Corp. (TRSSF) +19.9%
      15. Tilray Inc. (TLRY) +17.0%
      16. Trulieve Cannabis Corp. (TCNNF) +13.7%
      17. Valens GroWorks Corp. (VLNCF) -5.7% 
    • The average price change was +10.9%
  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) +21.1%
      2. Avicanna Inc. (AVCNF) +91.0%
      3. Cara Therapeutics Inc. (CARA) +12.2%
      4. Corbus Pharmaceuticals Holdings Inc. (CRBP) +23.7%
      5. GW Pharmaceuticals Plc (GWPH) +14.4%
      6. Zynerba Pharmaceuticals Inc. (ZYNE) +1.0%
    • The average price change was +13.0%
  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) +32.9%
      2. Neptune Wellness Solutions Inc. (NEPT) +78.6%
      3. New Age Beverages Corporation (NBEV) +1.4%
    • The average price change was +34.7%
  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) -1.3%
      2. Greenlane Holdings Inc. (GNLN) +86.0%
      3. Pyxus International Inc. (PYX) 15.8%
    • The average price change was +8.2%
  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) +23.4%
      2. Village Farms International Inc. (VFF) +19.8%
    • The average price change was +21.3%
  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) +3.3%
  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) +40.3%
  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) +63.1%
  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) +4.4%

The NPSI no longer includes Hexo (HEXO) and Aurora (ACB) as their stock prices have fallen below US$1/share, but they are worthy of mention and were -38.1% and -18.7%, respectively.

Summary Of April Price Performance

  • 1 stock went UP more than 90%
    • Avicanna (AVCNF) +91.0%
  • 1 stock went UP between 80% and 89.9%
    • Greenlane (GNLN) +86.0%
  • 1 stock went UP between 70% and 79.9%
    • Neptune (NEPT) +78.6%
  • 1 stock went UP between 60% and 69.9%
    • Akerna (KERN) +63.1%
  • 2 stocks went UP between 40% and 49.9%
    • Rubicon (ROMJF) +47.3% 
    • Medicine Man (SHWZ) +40.3%
  • 1 stock went UP between 30% and 39.9%
    • Cresco Labs Inc. (CRLBF) +32.9%
  • 5 stocks went UP between 20% and 29.9%
  • 11 stocks went UP between 10% and 19.9%
  • 6 stocks went UP between 0.6% and 9.9%
  • 1 stock went DOWN between 0.1% and 4.9%
    • AYR Strategies (AYRSF) -1.3%
  • 2 stocks went DOWN between 5% and 9.9%
    • Acreage Holdings (ACRGF)  -7.3%
    • Valens GroWorks (VLNCF) -5.7% 
  • 1 stock went DOWN between 10% and 14.9%
    • FSD Pharma (HUGE) -14.0%
  • 1 stock went DOWN between 15% and 19.9%
    • Pyxus (PYX) 15.8%
  • 1 stock went DOWN more than 20%
    • Organigram (OGI) -21.0%

To see how the new Non-penny Pot Stock Index (NPSI) has done on a daily and weekly basis for the past few months, visit the Cannabis Central daily updates here.

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