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This article is an update of the December 2nd article on the performance of 7 ancillary companies, with market capitalizations of at least US$250M, that provide goods and services to American cannabis multi-state operators (MSOs) and Canadian licensed producers (LPs) and compares its performance with those of the 4 other munKNEE cannabis stock categories to provide insight into the true health of the sector.

The munKNEE Ancillary Pot Stock Index

The 7 companies that make up the constituents of the non-tradable Index are DOWN -6.4% so far in December, on average, and are now DOWN -6.3%, on average, YTD. Their performances are presented below, in descending order, by month-to-date with year-to-date in brackets:

1. Turning Point Brands Inc. (TPB), a manufacturer, marketer, and distributor of alternative smoking accessories and consumables with active ingredients through more than 210,000 retail outlets in North America, is DOWN -3.4% so far in December (DOWN -18.5% YTD).
2. Innovative Industrial Properties Inc. (IIPR), a real estate investment trust engaged in the acquisition, ownership, and management of specialized industrial properties leased to state-licensed operators for their regulated medical-use cannabis facilities, is DOWN -4.2% so far in December (UP +39.4% YTD).
3. Forian (FORA), provides a suite of SaaS solutions, data management capabilities, and proprietary data and analytics to optimize and measure operational, clinical, and financial performance and is DOWN -5.5% so far in December (DOWN -29.1% YTD).
4. Scotts Miracle-Gro Company (SMG), a marketer of consumer lawn and gardening products and, through its subsidiary Hawthorne Gardening, is a leader in hydroponic and indoor growing products for the cannabis industry, is DOWN -5.9% so far in December (DOWN -23.5% YTD).
5. AFC Gamma (AFCG), a real estate finance company operating as a mortgage real estate investment trust (mREIT) to provide loans to marijuana operators, is DOWN -7.6% so far in December (DOWN -7.0% YTD).
6. Hydrofarm Holdings Group Inc. (HYFM), a manufacturer and wholesaler of hydroponics equipment and commercial horticultural products in the lighting, climate control, nutrients, and growing media categories, is DOWN -22.4% so far in December (DOWN -46.9% YTD).
7. GrowGeneration Corp. (GRWG), a retailer of organic nutrients and soils, advanced lighting technology, and state-of-the-art hydroponic equipment to commercial and home growers in 53 retail stores in the U.S., is DOWN -18.0% so far in December (DOWN -63.3% YTD).

In Summary

There are 42 constituents in the 5 munKNEE marijuana-related indices and they represent 19% of the total universe of 191 such stocks trading on the various Canadian and American stock exchanges and their performances are compared below, in descending order, so far in December and YTD to provide insight into the true health of the sector:

1. The Conservative Pot Stocks Index is UP +2.4% so far in December and is now UP +2.7% YTD. (see latest article here).
2. The Ancillary Pot Stock Index is DOWN -6.4% so far in December but is now DOWN -6.3% YTD.
3. The Pure-Play Marijuana Drug Stocks Index is DOWN -8.6% so far in December and is now DOWN -25.3% YTD (see details)
4. The Pure-Play American MSO Pot Stock Index is DOWN -9.8% so far in December and is now DOWN -26.6% YTD (see details here).
5. The Pure-Play Canadian LP Pot Stock Index is DOWN -15.2% so far in December and is now DOWN -40.9% YTD (see details here).

The average performance of the 42 constituents tracked, on an equally weighted basis, in the 5 indices above is DOWN -8.6% so far in December but is still UP +0.8% YTD. Interestingly, the non-tradable WeedStreet420 Pot Stocks Index, consisting of 191 constituent companies (all cannabis and cannabis-related stocks with capitalization of $20M or more) is UP +1.8% YTD in comparison indicating that the smaller capitalized companies are performing slightly better, on average, than the sum total average of munKNEE's 42 constituents tracked in its 5 cannabis indices.