TM editors' note: This article discusses small-, mid- and micro-cap stocks. Such stocks are easily manipulated; do your own careful due diligence. 

My last article touted the fact that, while cannabis stocks were DOWN 20%, on average, YTD, there were 11 constituents in munKNEE.com's Pot Stock Index that went UP 35.8%, on average, during the same 7-month period. This is a companion article which highlights the other side of the coin - 8 constituents that have declined between 40% and 60% YTD.

Of the 300 cannabis stocks that actively trade on the various Canadian and American stock exchanges only 25 (that's just 8% of the total) are pure-play cannabis companies who derive 100% of their revenue from the sale of cannabis or cannabis-related products and consistently trade for at least US$1/share and, as such, fulfill the criteria for inclusion in munKNEE.com's Pot Stock Index.

The 8 constituents with the largest declines over the past 7 months (i.e. as of July 31st) were as follows, in descending order:

1. Aurora (ACB) -60.7%
2. Tilray (TLRY) -56.9%
3. Acreage (ACRGF) -55.7%
4. Charlotte's Web (CWBHF) -55.6%
5. Medicine Man (SHWZ) -50.7%
6. Organigram (OGI) -49.8%
7. Avicanna (AVCNF) -44.4%
8. Valens (VLNCF) -40.5%

Interestingly, 3 of the 8 worst performers YTD are in the Vertically Integrated (Seed-to-Sale) Category of Canadian Licensed Producers (LPs), namely, ACB, OGI, and TLRY; 4 are in the American Multi-State Operators (MSOs) Category, namely, ACRGF, SHWZ, CWBHF and AVCNF and 1 (VLNCF) is in the Extraction Processor/Marketer Category.

While I stated in the previous article that the 11 companies that were up YTD reflected that they are well managed, well-financed, and executing their respective business plans in such a manner as to have the confidence of serious marijuana stock investors it would seem that the exact opposite can be said of the 8 dramatically under-performing stocks highlighted in this article.

Please leave any views or questions you have in the Comments section below. Thank you.