Cannabis Central: This New Marijuana Index Tracks The Pulse Of The Marijuana Market

OTCQX Cannabis Index tracks 30 marijuana stocks providing an ideal way to track the pulse of the market.

There were a total of 56 cannabis-related securities trading on the OTCQX at the end of last month and 30 of them are included in the new index which debuted a month ago..

Eligible securities for the OTCQX Cannabis Index (OTCQXMJ) must:

• be traded on OTCQX,
• be identified as having operations in the Cannabis space,
• and meet a minimum liquidity screen.

Below is a list of the companies that make up the initial holdings for the index (All dollar amounts are in Canadian dollars unless otherwise indicated.) Incidentally, a beta that is greater than 1.0 indicates that the security's price is theoretically more volatile than the market. For example, if a stock's beta is 1.2, it is assumed to be 20% more volatile than the market. This indicates that adding the stock to a portfolio will increase the portfolio’s risk, but also increase its expected return.

1. AusCann Group Holdings (ASX:AC8, OTCQX:ACNNF); Mkt. Cap: $118.9M : Beta: 1.37; https://auscann.com.au/
2. Aleafia Health Inc. (TSX:ALEF, OTCQX:ALEAF); Mkt. Cap: $304.7M;  Beta: 3.3; aleafiahealth.com/
3. Beleave Inc. (CSE:BE, OTCQX:BLEVF); Mkt. Cap: $35.6M; Beta: 3.5; https://beleave.com/
4. Auxly Cannabis Group Inc. (TSXV:XLY, OTCQX:CBWTF); Mkt. Cap: $430.9M; Beta: 5.5; https://auxly.com/
5. Cannex Capital Holdings Inc. (CSE:CNNX, OTCQX:CNXXF); Mkt. Cap: $242.5M; Beta: 3.5;  www.cannexcapital.com/
6. Cresco Labs Inc. (CSE:CL, OTCQX:CRLBF); Mkt. Cap: $1.4B; Beta: 1.3; www.crescolabs.com
7. Curaleaf Holdings Inc. (CSE:CURA, OTCQX:CURLF); Mkt. Cap: $4.1B; Beta: -139; curaleaf.com
8. Charlotte’s Web Holdings, Inc. (TSX:CWEB, OTCQX:CWBHF); Mkt. Cap: $871.4M; Beta: 2.9; www.charlottesweb.com
9. Elixinol Global Limited (ASX:EXL, OTCQX:ELLXF); Mkt. Cap: 586.1M AUD; Beta: N/A; Web site: N/A
10. Emerald Health Therapeutics Inc. (TSXV:EMH, OTCQX:EMHTF); Mkt. Cap: $333.1M; Beta: 1.8; www.emeraldhealth.ca
11. Harvest One Cannabis Inc. (TSXV:HVT, OTCQX:HRVOF); Mkt. Cap: $120.6M; Beta: 4.9; www.harvestone.com
12. Harvest Health & Recreation Inc. (CSE:HARV, OTCQX:HRVSF); Mkt. Cap: $2.28B; Beta: 2.0; www.harvestinc.com
13. InMed Pharmaceuticals Inc. (TSX:IN, OTCQX:IMLFF); Mkt. Cap: $60.3M; Beta: 5.3;  www.inmedpharma.com
14. iAnthus Capital Holdings Inc. (CSE:IAN, OTCQX:ITHUF); Mkt. Cap: $526.7M; Beta: 1.1;  www.ianthuscapital.com
15. Indiva Limited (TSXV:NDVA, OTCQX:NDVAF); Mkt. Cap: $36.9M; Beta: 2.9; www.indiva.com
16. Invictus MD Strategis Corp. (TSXV:GENE, OTCQX:IVITF); Mkt. Cap: $49.3M; Beta: 3.2; www.invictus-md.com
17. James E Wagner Cultivation Corporation (TSXV:JWCA,OTCQX:JWCAF); Mkt. Cap: $59.9M; Beta: 0.81; www.indiva.com
18. Lifestyle Delivery Systems Inc. (CSE:LDS, OTCQ X:LDSYF); Mkt. Cap: $31.1M; Beta: 5.0; www.lifestyledeliverysystems.com/
19. Liberty Health Sciences Inc. (CSE:LHS, OTCQX:LHSIF); Mkt. Cap: $203.7M; Beta: 0.46; www.libertyhealthsciences.com
20. MedMen Enterprises (CSE:MMEN, OTCQX:MMNFF); Mkt. Cap: $523.7M; Beta: 18.8;  www.medmen.com
21. 1933 Industries Inc. (CSE:TGIF, OTCQX:TGIFF); Mkt. Cap: $123.6M; Beta: 3.4; www.1933industries.com
22. OrganiGram Holdings Inc. (TSXV:OGI, NASDAQ:OGI); Mkt. Cap: $1.4B; Beta: 9.7; www.organigram.ca
23. CannaRoyalty, operating as Origin House (CSE:OH, OTCQX:ORHOF); Mkt. Cap: $566.8; Beta: 2.2;  www.originhouse.com
24. The Supreme Cannabis Company Inc. (TSX:FIRE, OTCQX:SPRWF); Mkt. Cap: $424.5M; Beta: 4.0; www.supreme.ca
25. The Green Organic Dutchman Holdings (TSX:TGOD, OTCQX:TGODF); Mkt. Cap: $913.7M; Beta: 5.0; www.originhouse.com
26. THC BioMed International Ltd. (CSE:THC, OTCQX:THCBF); Mkt. Cap: $31.4M; Beta: 2.4; www.thcbiomed.com
27. True Leaf Brands Inc. (CSE:MJ, OTCQX:TRLFF); Mkt. Cap: $30.6M; Beta: -0.64; www.trueleaf.com
28. Terra Tech Corp. (OTCQX:TRTC); Mkt. Cap: $57.8MUSD; Beta: 1.5; www.terratechcorp.com
29. Vivo Cannabis Inc. (TSXV:VIVO, OTCQX:VVCIF); Mkt. Cap: $156.2M; Beta: 3.0; www.vivocannabis.com
30. WeedMD Inc. (TSXV:WMD, OTCQX:WDDMF); Mkt. Cap: $172.9M; Beta: 3.1; www.weedmd.com

It is interesting to note that:

• the stocks above consist of: 2 Mid-Cap stocks ($2B-$10B);10 Small-Cap stocks ($300M -$2B);12 Micro-Cap stocks (450M-$300M) and 6 Nano-Cap stocks (less than $50m),
• the number per stock exchange is: TSX: 5; TSXV: 9; CSE: 13; ASX: 2 and OTC: 1 and that 
• the constituents in the index have experienced extreme volatility over the past 12 months:
  • the 52-week average high/low price spread was 3.8x and
  • the current Beta (excluding Elixinol & the Curaleaf -139.0 outlier) is 3.6

Please note:

• The 3.6 beta (i.e. volatility) of the above ETF conveys that it has a higher risk factor than the average 2.32 beta for the 3 ETFs analyzed in a previous article entitled
  • 'These 3 Marijuana ETFs Focus Exclusively On the U.S. Market'.
• The 3.6 beta is more in line with the 4.2 and 3.3 betas, respectively, for the group of individual stocks I highlighted in my 2 previous article entitled
  • 'Only These 8 "Pot" Stocks Trade On Both Canada's TSE And Either America's NYSE, Nasdaq Or AMEX' and
  • 'Not All "Pot" Stocks Are Penny Stocks: These 16 Trade Above $5/share'.

The OTCQX Cannabis Index daily performance can be seen here. (At this point in time investors cannot invest directly in the OTCQX Cannabis Index.)