The munKNEE.com pure-play* Pot Stock Index (PSI) of cannabis stocks that trade for more than US$1/share had a complete about-face on Tuesday declining 3.1% vs. a 5.6% advance on Monday. While 19 of the 25 constituents advanced on Monday 17 declined on Tuesday, and while 2 of the 3 associated sector categories advanced on Monday they all declined on Tuesday. The details are as follows:

Only 2 constituents advanced by 5% or more, namely:

1. Rubicon (ROMJF) +7.2%
2. Columbia (CCHWF) +6.6% (Columbia Care's Q2 Results Strongest In History)

6 additional constituents advanced in price on Tuesday.

5 constituents declined by 5% or more, namely:

1. Tilray (TLRY) -13.0%
2. cbdMD (YCBD) -9.6%
3. Charlotte's Web (CWBHF) -7.6%
4. Acreage (ACRGF) -7.0%
5. Canopy Growth (CGC) -5.5% (Canopy Growth Q1 Financial Report)

12 other constituents declined in price on Tuesday.

Further details regarding the equal-weighted munKNEE.com 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 excluded companies are GW Pharmaceuticals (GWPH), Arena Pharmaceuticals (ARNA), Abbvie, (ABBV), GrowGeneration (GRWG), Scotts Miracle-Gro (SMG), Innovative Industrial Properties REIT (IIPR), New Age Beverages (NBEV), Alcanna (LQSIF) and Alkerna (KERN).

2. The average market capitalization of the munKNEE.com PSI 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 2.7% on Monday.
  • the 8 constituents that are Canadian Licensed Producers (LPs) declined 4.3%, on average, on Tuesday vs. a 4.6% advance on Monday.
    • ACB; APHA; CGC; CRON; OGI; ROMJF; TLRY and VFF
  • the 11 constituents that are U.S. Multi-State Operators (MSOs) declined 2.1% on Tuesday vs. a 6.5% advance, on average, on Monday.
    • ACRGF; AYRSF; CCHWF; CRLBF; CURLF; GTBIF; JUSHF; PLNHF; SHWZ; TRSSF and TCNNF
  • the 3 constituents that are only involved in the seed-to-sale of CBD from hemp declined 7.5% on Tuesday vs. a 6.5% advance, on average, on Monday.
    • AVCNF; 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 0.8% on Tuesday vs. a 5.1% advance, on average, on Monday.
  • 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 declined a further 3.9% on Tuesday after a 2.2% 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:

1. "Marijuana" ETFs: A Troubling Expose
2. Cannabis Central: American MSOs Have Dramatically Outperformed Canadian LPs Year-To-Date and
3. Cannabis Central: These 8 Pot Stocks Have Gone Down 40% To 60% YTD

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