Canadian Pot Stocks Index Up Last Week; Still Down YTD

The Index consists of the 5 largest pure-play, vertically integrated LPs with market capitalizations of $300M or more whose stocks trade for US$1/share or more and trade on one or more of the Canadian and/or American stock exchanges.

The Canadian Pure-Play LP Pot Stock Index

Below is the stock price performance of each of the 5 constituents last week, in descending order, and in the last 5 weeks (since the end of May) and YTD (as of July 8th):

1. Organigram (OGI): +14.1% last week; -9.5% in last 5 weeks; -40.0% YTD
   • *Altman Z-Score: 3.1; less than 1% chance of financial distress in the next 2 years
   • **Piotroski F Score: 7
   • Recent Analysis/Commentary: Go here
2. Cronos (CRON): +11.0% last week; +2.6% in last 5 weeks; -20.2% YTD 
   • *Altman Z-Score: 15.2; less than 1% chance of financial distress in the next 2 years
   • **Piotroski F Score: 8
   • Recent Analysis/Commentary: Go here
3. Tilray (TLRY): +9.6% last week; -24.8% in last 5 weeks; -51.4% YTD
   • *Altman Z-Score: 1.0; 68% chance of financial distress in the next 2 years
   • **Piotroski F Score: 5
   • Recent Analysis/Commentary: Go here
4. Aurora (ACB): +5.3% last week; -17.3% in last 5 weeks; -74.3% YTD
   • *Altman Z-Score: 0.0; 52% chance of financial distress in the next 2 years
   • **Piotroski F Score: 4
   • Recent Analysis/Commentary: Go here
5. Canopy Growth (CGC): -8.1% last week; -46.3% in last 5 weeks; -70.0% YTD
   • *Altman Z-Score: 0.9; 65% chance of financial distress in the next 2 years
   • **Piotroski F Score: 4
   • Recent Analysis/Commentary: Go here

*The Altman-Z Score is a numerical measurement used to predict the chances of a business going bankrupt in the next two years based on five financial ratios - profitability, leverage, liquidity, solvency, and activity - and has an accuracy rate of from 82% to 94%. 

**The Piotroski F Score is a back-tested strategy that rates how strong the financial fundamentals are for a value stock and in back-testing of the system against the market between 1976 and 1996 the system it would have beaten the average return on the stock market by 13.4%.

• A score of 0-3 indicates that the company has weak fundamentals while a score of 8-9 indicates a company with powerful fundamentals that are most likely to keep performing well in the future.
• The Piotroski F Score is 100% accurate from a technical perspective yet unforeseen events like an economic downturn, for example can cause the markets to plummet regardless of what model is used. The Piotroski F Score is no exception but, ignoring any extreme situations, there is likely quite a lot of merit to the Piotroski F Score.

The Canadian Pure-play LP Pot Stock Index was +5.3% last week, -24.2% in last 5 weeks and is now -56.7% YTD.  In comparison, the 13 constituents in the American Pure-play MSO Pot Stock Index was +4.3% last week; -19.0% in last 5 weeks; and is now -55.6% YTD.

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