April Summary: Canadian Cannabis LPs Collapsed 12%

The 5 largest licensed producers (LPs), as tracked in our munKNEE Canadian Cannabis LPs Index, are ranked below, in descending order, as to their:

stock performance in April and year-to-date (YTD),
likelihood of Financial Distress within the next 2 years (source: macroaxis.com),
average Wall Street analyst 12-month Price Target (source seekingalpha.com),
extent of Short Interest (the number of shorted shares divided by the number of shares outstanding),
percentage of Insider Ownership (directors and senior officers or other beneficial holders with 10% or more of the common shares),
percentage of Institutional Ownership, and
Market Capitalization.

Cronos (CRON): down 3.6% in April; now down 25.8% YTD
- 18 analysts:
  - have an average 12-month price target representing a 52.4% increase from its current price and
  - have a consensus BUY rating.
- In addition, CRON has:
  - only a 2% chance of Financial Distress within 2 years,
  - 3.7% Short Interest,
  - 5.4% Insider Ownership,
  - 13.1% Institutional Ownership, and
  - $703M in Market Capitalization.
- Altria Group (MO) has a 45% stake in CRON
Tilray (TLRY): down 7.1% in April; now down 12.0% YTD
- 22 analysts:
  - have an average 12-month price target representing a 85.1% increase from its current price and
  - have a consensus BUY rating.
- In addition, TLRY has:
  - 68% chance of Financial Distress within 2 years,
  - 8.1% Short Interest,
  - 1.3% Insider Ownership,
  - 11.4% Institutional Ownership and
  - $1.4B in Market Capitalization.
- Anheuser-Busch (BUD) has a $100 million joint venture with TLRY.
Aurora (ACB): down 14.2% in April; now down 32.6% YTD
- 14 analysts:
  - have an average 12-month price target representing a 171.7% increase from its current price and
  - have a consensus HOLD rating.
- In addition, ACB has:
  - 78% chance of Financial Distress within 2 years,
  - 8.7% Short Interest,
  - 0.12% Insider Ownership,
  - 21.8% Institutional Ownership, and
  - $205M in Market Capitalization.
- received a Nasdaq notice on March 27th that the company is no longer in compliance with the minimum bid price requirement as the price has been below $1.00 for a period of 30 consecutive business days and has been granted a period of 180 calendar days or until September 20, 2023 to regain compliance with the minimum bid price requirement.
OrganiGram (OGI): down 21.9% in April; now down 35.9% YTD
- 15 analysts:
  - have an average 12-month price target representing a 162.0% increase from its current price and
  - have a consensus BUY rating.
- In addition, OGI has:
  - 49% chance of Financial Distress within 2 years,
  - NIL Short Interest,
  - 0.09% Insider Ownership,
  - 11.3% Institutional Ownership. and
  - $166M in Market Capitalization.
- British American Tobacco (BTI) has invested C$221M in a product development partnership with OGI
Canopy Growth (CGC): down 25.7% in April; now down 42.7% YTD
- 23 analysts:
  - have an average 12-month price target representing a 97.7% increase from its current price and
  - have a consensus SELL rating.
- In addition, CGC has:
  - 53% chance of Financial Distress within 2 years,
  - 16.1% Short Interest,
  - 0.08% Insider Ownership,
  - 13.5% Institutional Ownership, and
  - $678M Market Capitalization.
- Constellation Brands (STZ) has a 39% stake in CGC.

Summary

The munKNEE Canadian Cannabis LPs Index was down 12.4% in April and is now down 27.5% YTD. The average 12-month price target represents a 92.0% increase from its current price. In comparison, the 7 constituents in the munKNEE American Cannabis MSOs Index was UP 2.4% in April but is still down 18.2% YTD.

If you are interested in buying a basket of Canadian cannabis licensed producer (LP) stocks consider the Global X Cannabis ETF (POTX) that consists of the above 5 highlighted Canadian stocks plus another 12 cannabis or cannabis-related (i.e. auxiliary) stocks. It was -9.8% in April and is now -26.3% YTD, in comparison.

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