Cannabis Central: Only 2 Pure-Play Pot Stock Index Constituents Advanced Last Week
It seems that the munKNEE Pot Stock Index can't put together two good weeks in a row. This past week 88% of the constituents declined. The index was DOWN 9.2% after having gone UP 10.0% the previous week. The winners and losers are as follows:
Only 25 of the approximately 300 actively trading pot stocks 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 22nd.
Major Winners
Only 1 constituent went UP in excess of 10% during the week, namely, Avicanna (AVCNF), at 28.2%, while TerrAscend (TRSSF) went UP 8.9%. No other constituents went UP. Jushi (JUSHF) had no change in price.
Major Losers
12 constituents went DOWN by 10%, or more, namely:
- Trulieve (TCNNF) -19.0% vs. +33.1% the previous week
- Medicine Man (SHWZ) -18.1% vs. +39.6% the previous week
- Harvest Health (HRVSF) -13.8% vs. +4.5% the previous week
- Green Thumb (GTBIF) - 12.6% vs. +11.6% the previous week
- Curaleaf (CURLF) -12.5% vs. +4.6% the previous week
- Organigram (OGI) -12.2% vs. +15.7% the previous week
- Acreage (ACRGF) -12.1% vs. +2.3% the previous week
- Valens (VLNCF) - 12.1% vs. +21.8% the previous week
- Aurora (ACB) -12.0 vs. +4.1% the previous week
- Greenlane (GNLN) -11.6% on top of -24.7% the previous week
- cbdMD (YCBD) -11.6% vs. on top of - 13.1% the previous week
- Charlotte's Web (CWBHF) -11.5% vs. +12.3% the previous week
Tilray (TLRY) was -8.4% on top of -2.8% the previous week. Another 9 constituents had price declines of less than 8% for the week.
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 9.5% vs. +11.3% the previous week.
- the 7 constituents that are Canadian Licensed Producers (LPs) declined 7.3%, on average, vs. +2.5% the previous week.
- the 12 constituents that are U.S. Multi-State Operators (MSOs) declined 10.5%, on average, vs. +18.1% the previous week.
- the 2 MSO constituents that are only involved in the seed-to-sale of CBD from hemp declined 11.6%, on average, on top of a -1.0% the previous week.
- The Extraction Category consists of companies focused on the extraction of cannabis compounds and their infusion into consumer products and it declined 8.1%, on average, vs. +4.9% the previous 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. It declined 11.6% on top of -24.7% the previous week.
- 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 28.2% vs. -3.7 the previous week.
- the 1 constituent in this category is AVCNF
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.
- Unlike every marijuana ETF (see this TalkMarkets article) and every other cannabis tracking index (see this TalkMarkets article), the munKNEE.com Pot Stock Index excludes "wanna-be" companies that generate little, if any, of their revenue directly from the cannabis industry, so as to reflect the true health of the marijuana industry in the U.S. and Canada. As such, the PSI excludes the following 12 companies:
- GW Pharmaceuticals (GWPH), is a bio-pharmaceutical company that generates 90% of its revenue from one cannabis-based product, Epidiolex;
- Cara (CARA), Corbus (CRBP), Zynerba (ZYNE) and XPhyto (XPHYF) are bio-pharmaceutical companies doing research into the development of pharmaceuticals containing either CBD and/or THC but have not, as yet, introduced any such products into the marketplace;
- GrowGeneration (GRWG) and Scotts Miracle-Gro (SMG) are companies that supply hydroponic equipment and marijuana based fertilizer, respectively, to the industry;
- Innovative Industrial Properties (IIPR), a real estate investment trust (REIT), is engaged in the acquisition, ownership and management of specialized industrial properties leased to state-licensed operators for their regulated medical-use cannabis facilities;
- New Age Beverages (NBEV) is a beverage company in the process of developing a marijuana-infused line of drinks;
- Alcanna (LQSIF) is a retail liquor chain in Alberta, Canada, that also sells recreational marijuana products;
- Alkerna (KERN) is a technology company that provides a central data management system for tracking regulated cannabis products and
- Village Farms (VFF) is a grower and marketer of greenhouse tomatoes, bell peppers, and cucumbers and in a 57.4% joint venture with the private seed-to-sale Licensed Producer, Pure Sunfarms.
2. The average market capitalization of the companies in our PSI is US$963M.
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