E Cannabis Central: Dismal Month For Every "Pot" Stock & ETF Except Neptune Wellness Solutions Inc.

TM Editors' Note; This article discusses one or more penny stocks and/or microcaps. Such stocks are readily manipulated; do your own careful due diligence.

Given all the interest in "pot" stocks and ETFs these days one would think that the cannabis sector was setting the world on fire but the truth of the matter is that the performance of almost 100% of the 135 "pot" stocks & ETFs that I follow are way down this month - way down - except this 1 stock. This article identifies that stock and provides a solid reason why that is the case.

As you are no doubt aware the sale of medical cannabis is now legal in Canada and recreational use marijuana becomes legal in Canada this October. What you may not know, though, is that the sale of medical cannabis is legal in 33 U.S. states and recreational marijuana is legal in 10 of those states and the MSO (Multi State Operators) U.S. companies that are distributing their products in one or more of those states are only trading on the Canadian Stock Exchange (CSE) and the fledgling NEO exchange.

To put things in perspective I checked out the performance of 7 ETFs specializing in the marijuana sector and found that they are:

  • DOWN 11.1% on average (ranging from -6.5% to -14.7%) since July 1st and
  • DOWN 26.0% on average (ranging from -24.4% to -36.5%) from their 5-month highs.

Conversely, I have only found 1 "pot" stock - only 1 - that is UP over both time periods i.e, UP 34.5% since July 1st and UP 90.8% since March 23rd. The stock is:

Neptune Wellness Solutions Inc. (TSX:NEPT; Nasdaq: NEPT) neptunecorp.com/en/

Neptune operates as a nutrition supplement company that develops and produces cannabis products, marine and seed oils and pet supplements for clients in Canada. It is a small-cap stock ($705M) with a current beta of 1.57 which is actually very low for the cannabis sector.

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Disclaimer: In spite of the positive outlook for the above stocks this article highlights the fact that "pot" stocks are very volatile so it imperative that any investor contemplating ...

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David J. Williamson 8 months ago Member's comment

Thanks Lorimer, if you could only invest in one cannabis company, which would it be?