Cannabis Central: Pure-Play Pot Stock Index Declined On Tuesday

The munKNEE.com Pot Stock Index of the 25 pure-play* cannabis stocks that trade for more than US$1/share declined 1.9% on Tuesday with 11 of the constituents advancing, 13 declining, 1 with no change in price and 3 of the 4 associated sector categories declining. The details are as follows:

Only 1 constituent advanced by 5% or more, namely:

Medicine Man (SHWZ) +10.4% (bouncing back from an extremely negative Q2 financial report and 19.4% decline on Monday)

10 additional constituents advanced in price.

2 constituents declined by 5% or more, namely:

Curaleaf (CURLF) -6.2% (after a 4.5% advance on Monday as a result of its Q2 financials - see here - that reported record results)
Trulieve (TCNNF) -5.2% (a further decline from the 5.7% decline on Monday despite reporting record Q2 financials last week - see here)

10 other constituents declined while 1 was unchanged in price.

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

1. *The 25 pure-play constituents in the munKNEE.com 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.com PSI excludes "wanna-be" companies that generate little, if any, of their total revenue directly from the cannabis industry, as to reflect the true health of the marijuana industry in the U.S. and Canada.
As such, the munKNEE.com PSI excludes: GW Pharmaceuticals (GWPH), Abbvie, (ABBV), Arena Pharmaceuticals (ARNA), GrowGeneration (GRWG), Scotts Miracle-Gro (SMG), Innovative Industrial Properties REIT (IIPR), New Age Beverages (NBEV), Alcanna (LQSIF), Alkerna (KERN) and Village Farms (VFF).

2. The average market capitalization of the munKNEE.com PSI is US$963M.

3. In addition, the constituents operate in 4 categories based on their primary area of focus in the cannabis industry and the constituents within each category are identified below with how each of the categories did:

The Vertically Integrated (i.e. Seed-to-Sale) Category consists of 21 companies that grow, process, and sell cannabis and hemp flower and related products and it declined 2.0%.
- the 7 constituents that are Canadian Licensed Producers (LPs) declined 0.2%, on average.
  - ACB; APHA; CGC; CRON; OGI; ROMJF and TLRY
- the 12 constituents that are U.S. Multi-State Operators (MSOs) declined 3.1%, on average.
  - ACRGF; AYRSF; CCHWF; CRLBF ; CURLF; GTBIF; JUSHF; PLNHF; SHWZ; TRSSF; TCNNF and HRVSF
- the 2 constituents that are only involved in the seed-to-sale of CBD from hemp declined 1.0%, on average.
  - CWBHF and YCBD
The Extraction Category consists of companies focused on the extraction of cannabis compounds and their infusion into consumer products and it declined 1.7%, on average.
- the 2 constituents in this category are NEPT and VLNCF
The Consumption Devices Category consists of companies focused on developing and selling personal consumption devices for cannabis consumers such as vape pens and inhalers. It advanced 0.7%.
- the 1 constituent in this category is GNLN
The Biotechnology Category consists of pharmaceutical companies marketing new drugs and products utilizing cannabinoids and the category advanced 2.9% on top of a 2.9% increase on Monday.
- the 1 constituent in this category is AVCNF