Canadian Cannabis LP Index Dropped 8.5% Today To New 52-Week Lows

Photo by Isabel Piñeiro on Unsplash

This past weekend I wrote (see here) that the Canadian Pure-play LP Pot Stock Index had dropped to a 52-week low. Today, Monday the 13th, the bottom fell out of the sector with the Index declining 8.5% on the day. Here are the details:

The Canadian Pure-play LP Pot Stock Index

The Canadian Pot Stock Index consists of the 5 largest pure-play, vertically integrated Licensed Producers (average market cap of $869.4M) whose stocks trade for at least US$1/share (average share price was $2.23) and trade on one or more of the Canadian and/or American stock exchanges.

Below is how the 5 constituents performed today, in descending order:

1. Cronos (CRON): DOWN 4.8%
   • Chance of Financial Distress in the next 2 years: less than 3%
   • Analyst Consensus: 18 stock analysts currently rate CRON as a BUY
   • Recent Analysis/Commentary: Go here
2. Tilray (TLRY): DOWN 7.7%
   • Chance of Financial Distress in the next 2 years: +70%
   • Analyst Consensus: 26 stock analysts currently rate TLRY as a HOLD
   • Recent Analysis/Commentary: Go here
3. Canopy Growth (CGC): DOWN 10.1%
   • Chance of Financial Distress in the next 2 years: +71%
   • Analyst Consensus: 26 stock analysts currently rate CGC as a SELL
   • Recent Analysis/Commentary: Go here
4. Organigram (OGI): DOWN 10.5%
   • Chance of Financial Distress in the next 2 years: less than 3%
   • Analyst Consensus: 17 stock analysts currently rate OGI as a BUY
   • Recent Analysis/Commentary: Go here
5. Aurora (ACB): DOWN 12.1%
   • Chance of Financial Distress in the next 2 years: 56%
   • Analyst Consensus: 17 stock analysts currently rate ACB as a SELL
   • Recent Analysis/Commentary: Go here

The Canadian Pure-play LP Pot Stock Index was in free-fall today dropping 8.5% and is now DOWN 26.9% so far in June and DOWN 58.4% YTD.