October Recap: Canadian Cannabis LPs Index Jumped 16%

The Canadian Cannabis LPs Index consists of the 5 largest pure-play vertically integrated (i.e. seed-to-sale) Canadian Licensed Producers (LPs). Below are the performances of its constituents as of October 28th*, in descending order. Go here for the latest in analysis and commentary on each of the companies.

  1. Tilray (TLRY): UP 31.5% in October*
    • reacted positively to Canopy Growth's move to form a U.S.-based holding company to accelerate its entry into the fast-growing U.S. market. 
  2. Canopy Growth (CGC): UP 15.4% in October*
    • announced that it is  fast-tracking its move into the U.S. market with investments in multi-state operator Acreage, cannabis edibles brand Wana, and California-based Jetty. 
  3. OrganiGram (OGI): UP 10.2% in October*
  4. Cronos (CRON):UP 9.6% in October*
  5. Aurora (ACB): UP 4.1% in October*

In total, the munKNEE Canadian Cannabis LPs Index was UP 16.3% in October (the S&P500 index was only up 8.7% in comparison) which was the largest monthly increase realized so far in 2022. In spite of that, the Index is still -54.8% YTD. For its components, the losses range from "only"  -21.2% YTD for Cronos Group to a whopping -76.3% YTD for Aurora Cannabis. 

As I mentioned in my recent article on marijuana ETFs (see here), if you are interested in investing in the Canadian LP category the ETFs with the largest percentage of such stocks is the Global X Cannabis ETF (POTX) which, for comparison purposes, was UP 10.6% in October and is DOWN 56.6% YTD.

If you believe that the category has more or less bottomed and is setting the stage to surge upwards then you might want to consider investing in one of the bull ETFs mentioned below::

  1. ETFMG 2x Daily Bull Alternative Harvest ETF (MJXL)
  2. Horizons 2x Bull Marijuana Companies ETF (HMJU)

Conversely, if you think the category is going to decline further you might want to consider investing in one of the following inversely leveraged ETFs:

  1. ETFMG 2x Daily Inverse Alternative Harvest ETF (MJIN)
  2. BetaPro 2x Inverse Canadian Marijuana Companies ETF (HMJI)

More By This Author:

October Recap: Metaverse Stocks Index UP 3%; Meta Platforms Down 27%
October Recap: Major Plant-Based Food Stocks Only Declined 1.2%
October Recap: Major Psychedelic Drug Stocks Declined 9.9%

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