Cannabis Central: Last Week Was A Very Good Week

The munKNEE Pot Stock Index was UP 10.0% this past week, a marked improvement from the slight 1.3% increase the previous week. The details are as follows:

The pot stock universe has 400+ cannabis-related securities listed on the various Canadian and American stock exchanges of which approx. 300 actively trade. Of those 300, though, only 25 (that's just 8% of the total) fulfill the criteria for inclusion in the munKNEE Pot Stock Index of being pure-play* cannabis companies (i.e derive 100% of their revenue from the sale of cannabis or cannabis-related products) whose stocks consistently trade for at least US$1/share.

Below are the major winners and losers for the week ending August 15th.

Major Winners

11 constituents went UP in excess of 10%, namely:

Medicine Man (SHWZ) +39.6% (-42% YTD)
Trulieve (TCNNF) +33.1% (+111.7% YTD)
Planet 13 (PLNHF) +29.6% (+76.5% YTD)
AYR (AYRSF) +22.4% (+24.0% YTD)
Valens (VLNCF) +21.8% (-27.5% YTD)
Organigram (OGI) +15.7% (-40% YTD)
Cresco (CRLBF) +15.3% (+5.7% YTD)
Columbia (CCHWF) +13.1% (+48.6% YTD)
Charlotte's Web (CWBHF) +12.3% (-51.4% YTD)
Green Thumb (GTBIF) +11.6% (+64.2% YTD)
Rubicon (ROMJF) +10.1% (+73.1% YTD)

Another 8 constituents had price increases of less than 10% for the week. 1 constituent had no change in price.

Major Losers

2 constituents went DOWN by 10%, or more, namely:

Greenlane (GNLN) -13.6% (-10.1% YTD)
cbdMD (YCBD) +11.2% (+62% YTD)

3 other constituents had price declines of less than 10% for the week.

Further details regarding the equal-weighted munKNEE Pot Stock Index are as follows:

1. *The 25 pure-play constituents in the PSI are just that - pure - deriving 100% of their revenue from the sale of cannabis or cannabis-related products. As such, unlike every marijuana ETF (see this TalkMarkets article) and every other cannabis tracking index (see this TalkMarkets article), the munKNEE PSI excludes "wanna-be" companies that generate little, if any, of their total revenue from the cannabis industry so as to reflect the true health of the marijuana industry in the U.S. and Canada.

2. The official definition of a "penny" stock is one that trades below US$5/share but, when it comes to pot stocks, that is where 92% of the total universe trades, so the more literal definition of stocks that trade for less than US$1/share is used.

3. The market capitalization of the 25 constituents in the PSI is US$962.8M, on average.

4. The constituents operate in 3 categories based on their primary area of focus and they are identified below within each applicable category:

The Vertically Integrated (i.e. Seed-to-Sale) Category consists of 22 companies that grow, process, and sell cannabis and hemp flower and related products of which:
- 7 constituents are Canadian Licensed Producers (LPs), namely: ACB; APHA; CGC; CRON; OGI; ROMJF and TLRY
  - and they advanced 2.5%, on average, this past week.
- 12 constituents are American Multi-State Operators (MSOs), namely: ACRGF; AYRSF; CCHWF; CRLBF; CURLF; GTBIF; JUSHF; PLNHF; SHWZ; TRSSF; TCNNF and HRVSF
  - and they advanced 18.1%, on average, this past week on top of a 13.6% advance, on average, the previous week.
- 3 constituents are only involved in the seed-to-sale of CBD from hemp, namely: AVCNF; CWBHF, and YCBD
  - and they declined 13.1%, on average, this past week on top of a decline of 3.4%, on average, the previous week.
The Extraction Category consists of companies focused on the extraction of cannabis compounds and their infusion into consumer products of which:
- 2 are PSI constituents, namely: NEPT and VLNCF
  - and they advanced by 4.9%, on average, this past week.
The Consumption Devices Category consists of companies focused on developing and selling personal consumption devices for cannabis consumers such as vape pens and inhalers.
- 1 constituent is in this category, namely, GNLN
  - and it declined 13.6% this past week on top of a 12.2% decline the previous week.