Ancillary Pot Stock Index +8% Last Week; Still -51% YTD

The Ancillary Pot Stock Index consists of 7 companies that provide goods and/or services to American cannabis multi-state operators (MSOs) and Canadian licensed producers (LPs) whose stocks trade for at least US$1/share, have a market cap of at least US$100M, and trade on one or more of the Canadian and/or American stock exchanges. [Ed. note: One or more of these companies is a microcap. Such stocks are more readily manipulated; do your own careful due diligence.]

The munKNEE Ancillary Pot Stock Index

The performances of the 7 companies that make up the constituents of the non-tradable Index are presented below, in descending order, for last week  and YTD and compared at the end of the article to the performances, in total, of the other 4 cannabis categories:

1. Forian (FORA): UP 12.9% last week; DOWN 52.3% YTD
   • Provides a suite of SaaS solutions, data management capabilities, and proprietary data and analytics to optimize and measure operational, clinical, and financial performance.
   • Chance of Financial Distress in the next 2 years: 54%
   • Analyst Consensus: 7 stock analysts currently rate FORA as a BUY
2. Innovative Industrial Properties Inc. (IIPR): UP 10.1% last week; DOWN 54.6% YTD
   • A real estate investment trust (REIT) engaged in the acquisition, ownership, and management of specialized industrial properties leased to state-licensed operators for their regulated medical-use cannabis facilities.
   • Chance of Financial Distress in the next 2 years: less than 1%
   • Analyst Consensus: 14 stock analysts currently rate IIPR as a BUY
3. GrowGeneration Corp. (GRWG): UP 10.0% last week; DOWN 68.0% YTD
   • A retailer of organic nutrients and soils, advanced lighting technology, and state-of-the-art hydroponic equipment to commercial and home growers in 53 retail stores in the U.S..
   • Chance of Financial Distress in the next 2 years: 4%
   • Analyst Consensus: 15 stock analysts currently rate GRWG as a BUY
4. Scotts Miracle-Gro Company (SMG): UP 7.2% last week; DOWN 48.9% YTD
   • A marketer of consumer lawn and gardening products and, through its subsidiary Hawthorne Gardening, is a leader in hydroponic and indoor growing products for the cannabis industry.
   • Chance of Financial Distress in the next 2 years: 38%
   • Analyst Consensus: 16 stock analysts currently rate SMG as a BUY
5. AFC Gamma (AFCG): UP 6.1% last week; DOWN 26.1% YTD
   • A real estate finance company operating as a mortgage real estate investment trust (mREIT) to provide loans to marijuana operators.
   • Chance of Financial Distress in the next 2 years: +55%
   • Analyst Consensus: 13 stock analysts currently rate AFCG as a BUY
6. Turning Point Brands Inc. (TPB): UP 5.0% last week; DOWN 22.4% YTD
   • A manufacturer, marketer, and distributor of alternative smoking accessories and consumables with active ingredients through more than 210,000 retail outlets in North America.
   • Chance of Financial Distress in the next 2 years: 38%
   • Analyst Consensus: 8 stock analysts currently rate TPB as a BUY
7. Hydrofarm Holdings Group Inc. (HYFM): UP 1.0%; DOWN 85.4% YTD
   • A manufacturer and wholesaler of hydroponics equipment and commercial horticultural products in the lighting, climate control, nutrients, and growing media categories.
   • Chance of Financial Distress in the next 2 years: +57%
   • Analyst Consensus: 13 stock analysts currently rate HYFM as a BUY

On average, the munKNEE Ancillary Pot Stock Index was UP 8.2% last week but is still DOWN 51.3% YTD.

Here's how the Ancillary category's performance compares with the other 4 categories, in descending order, last week and YTD:

1. The Pure-Play Canadian LP Pot Stock Index
   • UP 13.1% last week; DOWN 51.3% YTD (see this weekend's article here for details)
2. The Conservative Pot Stocks Index
   • UP 6.0% last week; UP 1.5% YTD (see this weekend's article here for details)
3. The Pure-Play Psychedelic Compounds-Based Stocks Index
   • UP 5.4% last week; DOWN 60.7% YTD
4. The Pure-Play American MSO Pot Stock Index
   • DOWN 2.5% last week; DOWN 54.2% YTD (see this weekend's article here for details)