Pot Stock Index Was Up 2.7% Wednesday; FSD Pharma Up 138% - Here's Why

The Non-Penny Pot Stock Index (NPSI) was up 2.7%% on Wednesday as a result of major increases in FSD Pharma (+138.4%), Planet 13 (+26.2%), Pyxus Int'l (+16.1%) and Village Farms (+14.6%). 25 of the 39 constituents went UP, 12 went DOWN and 2 saw no change in price with 7 of the 9 sector categories advancing.

298 cannabis companies have securities that actively trade on the various stock exchanges in Canada and the United States of which 39 (just 13% of the total) trade for at least US$1/share and, as such, are included in my proprietary Non-penny Pot Stock Index (NPSI).

Below are the price changes on the day for the few constituents that either advanced or declined by 5% or more from yesterday (Tuesday):

The Biggest Winners 

1. FSD Pharma (HUGE) +138.4%
   • The FDA has permitted FSD Pharma to submit an Investigational New Drug (IND) Application for the use of FSD-201 to treat COVID-19.
2. Planet 13 (PLNHF) +26.2%
   • The company reported very favorable Q1 2020 Revenue of US$16.8M and EBITDA of US$2.5M
3. Pyxus (PYX) +16.1%
4. Village Farms (VFF) 14.6%
5. Acreage (ACRGF) +10.9%
6. Abacus (ABAHF) +7.2%
7. Charlotte's Web (CWBHF) +6.1%
8. New Age (NBEV) +5.9%
9. Neptune (NEPT) +5.0%

The Biggest Losers

1. Medicine Man (SHWZ) -11.9%
2. GrowGeneration (GRWG) -7.6%

Notable Mentions 

• HEXO (HEXO) +5.4% (a former constituent but now trading below US$1/share.)
• With the 19% increase in the average cannabis stock in May (see detail here) 5 additional companies are now trading marginally above US$1/share and, therefore, are technically eligible to be included in the NPSI, namely,
  1. Canopy Rivers Inc. (CNPOF),
  2. Jushi Holdings Inc. (JUSHF), 
  3. KushCo Holdings Inc. (KSHB); 
  4. Canafarma Hemp Products Corp. (CNFA) and 
  5. EGF Theramed Health Corp. (EVAHF).
• If any of these stocks are still trading above US$1/share at the end of the month they will be added to the NPSI. 

Further details regarding the current constituents of the NPSI are as follows:

• 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 87% of the total universe trades, so the more literal definition of stocks that trade for less than US$1/share is used.
• In addition, the constituents operate within 9 categories based on their primary area of focus in the cannabis industry and the constituents within each category are identified in the TalkMarkets' article "Cannabis Central: Finally - The Pot Stock Marketplace Demystified".

Below is how well each of the 9 categories did on Wednesday:

1. Cultivation & Retail Category: +5.7%
2. Biotechnology Category: +1.1%
3. Marijuana-Infused Products Category: +2.4%
4. Consumption Devices Category: +2.4%
5. Agricultural Technology Category: +2.0%
6. Real Estate Category: +2.7%
7. Business Services/Consulting Category: -11.9%
8. Tech & Media Category: -0.3%
9. Hemp Products Category: +5.3%

To see how the new Non-penny Pot Stock Index (NPSI) has done on a daily basis recently, visit the daily updates here.