Canadian LP Cannabis Index Continued Its Decline

Photo by Isabel Piñeiro on Unsplash

Last weekend I wrote (see here) that the Canadian Pure-Play LP Pot Stock Index had dropped to a 52-week low. I updated that information the following Monday (see here) reporting that the sector had declined a further 8.5% that day. The Index rebounded slightly in the ensuing 4 trading days but settled out down 5.3% on the week. Here are the details:

The Canadian Pure-Play LP Pot Stock Index

The Canadian Pot Stock Index consists of the 5 largest pure-play, vertically integrated Licensed Producers with market capitalizations of $300M or more whose stocks trade for US$1/share or more and trade on one or more of the Canadian and/or American stock exchanges.

Below is how the 5 constituents performed this past week and YTD, in descending order:

1. Cronos (CRON): UP 1.1% this past week; DOWN 29.6% YTD 
   • Chance of Financial Distress in the next 2 years: less than 1%
   • Analyst Consensus: 18 stock analysts currently rate CRON as a BUY
   • Recent Analysis/Commentary: Go here
2. Tilray (TLRY): DOWN 5.3%; DOWN 54.5% YTD
   • Chance of Financial Distress in the next 2 years: +67%
   • Analyst Consensus: 26 stock analysts currently rate TLRY as a HOLD
   • Recent Analysis/Commentary: Go here
3. Canopy Growth (CGC): DOWN 7.7%; DOWN 61.4%
   • Chance of Financial Distress in the next 2 years: +61%
   • Analyst Consensus: 26 stock analysts currently rate CGC as a SELL
   • Recent Analysis/Commentary: Go here
4. Aurora (ACB): DOWN 7.9%; DOWN 76.2% YTD
   • Chance of Financial Distress in the next 2 years: 52%
   • Analyst Consensus: 17 stock analysts currently rate ACB as a SELL
   • Recent Analysis/Commentary: Go here
5. Organigram (OGI): DOWN 10.5%; DOWN 46.3% YTD
   • Chance of Financial Distress in the next 2 years: less than 1%
   • Analyst Consensus: 17 stock analysts currently rate OGI as a BUY
   • Recent Analysis/Commentary: Go here

The Canadian Pure-play LP Pot Stock Index declined 5.3% last week and is DOWN 24.3% so far in June and is now DOWN 56.9% YTD.  (As bad as that might seem, the American Pure-play MSO Pot Stock Index declined 12.5% this past week (see details here).