Cannabis Central: Another Day, Another 2.7% Gain
TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.
munKNEE.com's Pot Stock Index consists of the 25 pure-play* cannabis stocks that consistently trade above US$1/share and it matched Monday's gain of 2.7%. 14 of the constituents were up, 2 had No Change in price and 2 of the 3 associated sector categories were up. The details are as follows:
Biggest Winners
- Only 4 constituents went UP in excess of 5%, namely:
- 10 other constituents went UP by less than 5%.
Only 2 Big Losers
- Only 2 constituents went DOWN in excess of 5%, namely:
- 7 other constituents went UP by less than 5%.
Harvest Health (HRVSF) and IMCannabis (IMCNF) are on the verge of being included in munKNEE.com's PSI but have not yet been able to consistently stay above US$1/share.
Further details regarding the equal-weighted 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 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. Such companies include GW Pharmaceuticals (GWPH), Arena Pharmaceuticals (ARNA), Abbvie, (ABBV), GrowGeneration (GRWG), Scotts Miracle-Gro (SMG), Innovative Industrial Properties REIT (IIPR), New Age Beverages (NBEV) and Alcanna (LQSIF).
2. None of the constituents are large-cap (US$10B) and only 4 are mid-cap (US$2B to US$10B) while 9 are small-cap (US$300M to US$2B), 11 are micro-cap (US$50M to US$300M) and 1 is a nano-cap (<US50M). The average market cap of the index is US$963M.
3. In addition, the constituents operate in 3 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 22 companies that grow, process, and sell cannabis and hemp flower and related products and it advanced 2.9% compared to +2.7% on Monday.
- the 8 constituents that are Canadian Licensed Producers (LPs) advanced 4.5% compared to +1.7%, on average, on Monday.
- the 11 constituents that are U.S. Multi-State Operators (MSOs) advanced 1.9% compared to +3.8%, on average, on Monday.
- the 3 constituents that are only involved in the seed-to-sale of CBD from hemp advanced 0.8% compared to +1.0%, on average, on Monday.
- The Extraction Category consists of companies focused on the extraction of cannabis compounds and their infusion into consumer products and it advanced 0.7% compared to +3.7%, on average, on Monday.
- 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 declined another 1.1% on the heels of a 2.6% decline on Monday.
- the 1 constituent in this category is GNLN
You have shown a serious interest in the cannabis sector by reading this article to the very end so don't stop here. Check out the following exclusive articles posted recently on TalkMarkets for more information on the marijuana market that is not to be found anywhere else, namely:
- "Marijuana" ETFs: A Troubling Expose
- Cannabis Central: Not All Pot Stocks Are Losers: These 10 Are UP An Average Of 23% YTD. and
- Cannabis Central: These 8 Pot Stocks Have Gone Down 40% To 60% YTD
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