April Summary: Conservative "Cannabis" Stocks Outperformed

If you aren't comfortable with investing directly in cannabis companies, why not try investing in those companies that have major financial investments in Canadian and American pure-play cannabis stocks as represented in the munKNEE Conservative "Cannabis" Stocks Index. It was +3.6% in April (+2.4% YTD) compared to the Canadian Cannabis LP (see here) and American Cannabis MSO (see here) Indexes which were -11.0%, on average, in April (and -26.4% YTD).

The munKNEE Conservative "Cannabis" Stocks Index consists of 3 tobacco companies, 2 beer companies, and 1 liquor company that are significantly invested in cannabis companies and they are presented below, in descending order, as to:

their stock performances in April and YTD and as compared to the Canadian cannabis companies they are part-owners of,
their average Wall Street analyst consensus 12-month Price Targets,
their consensus Buy/Hold/Sell ratings,
their current Dividend Yield, and
their projected Price/Earnings Ratios (FWD).

Molson Coors (TAP): UP 15.1% in April; UP 15.8% YTD
- has a 57.5%/42.5% joint venture, called TRUSS, with Hexo Corp. (HEXO): DOWN 9.7% in April; UP 19.8% YTD.
- 21 analysts:
  - have an average 12-month price target representing a 7.5% DECREASE from its current price,
  - have a consensus HOLD rating,
- has a dividend yield of 2.6% and
- has a projected price/earnings ratio (FWD) of 14.6
Imperial Brands (IMBBY): UP 7.6% in April; DOWN 0.3% YTD
- has a 19.9% stake in Auxly Cannabis Group (CBWTF): No Change in April; No Change YTD.
- 1 analyst:
  - has an average 12-month price target representing a 36.8% increase from its current price,
  - has a BUY rating,
- has a dividend yield of 6.8% and
- has a projected Price/Earnings Ratio (FWD) of 13.4
Altria Group (MO): UP 6.5% in April; UP 4.1% YTD
- has a 45% stake in Cronos Group (CRON), DOWN 3.6% in April; DOWN 25.8% YTD.
- 17 analysts:
  - have an average 12-month price target representing an 4.8% increase from its current price,
  - have a consensus HOLD rating,
- has a dividend yield of 7.9% and
- has a projected price/earnings ratio (FWD) of 9.4
British American Tobacco (BTI): UP 5.5% in April; DOWN 7.2% YTD
- has a C$221M investment and product development partnership with Organigram Holdings (OGI): DOWN 21.9% in April; DOWN 35.9% YTD.
- has a $56.8 million investment in Charlotte’s Web Holdings (CWBHF), (UP 11.3% in April; DOWN 34.4% YTD), in the form of a convertible debenture which, if converted (at BTI's discretion), would equate to a 19.9% ownership position in the company,
- 4 analysts:
  - have an average 12-month price target representing a 38.7% increase from its current price,
  - have a consensus BUY rating,
- has a dividend yield of 7.2% and
- has a projected price/earnings ratio (FWD) of 8.6
Constellation Brands (STZ): UP 1.6% in April; DOWN 0.6% YTD
- has a 39% stake in Canopy Growth (CGC): DOWN 25.7% in April; DOWN 42.7% YTD.
- 28 analysts:
  - have an average 12-month price target representing just a 11.3% increase from its current price,
  - have a consensus BUY rating,
- has a dividend yield of 1.6% and
- has a projected price/earnings ratio (FWD) of 19.4
Anheuser-Busch (BUD): DOWN 2.6% in April; UP 8.4% YTD
- has a $100 million joint venture with Tilray (TLRY): DOWN 7.1% in April; DOWN 12.0% YTD.
- 9 analysts:
  - have an average 12-month price target representing a 7.2% increase from its current price,
  - have a consensus BUY rating,
- has a dividend yield of 1.6% and
- has a projected price/earnings ratio (FWD) of 19.6

In summary, the munKNEE Conservative "Cannabis" Stocks Index:

was UP 3.6% in April and is now UP 2.4% YTD,
its constituents currently have an average dividend yield of 2.9% and
the average 12-month price targets mentioned above represent a 11.2% increase from their current prices.

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