American And Canadian Cannabis Stocks Were Flat Last Week

person holding white flower during sunset

Only 23 of the 225 cannabis and ancillary companies trading on the various North American stock exchanges meet the criteria* for inclusion in the munKNEE  Pure-Play "Seed-to-Sale" Pot Stocks Index. The Index consists of two sub-categories: the Canadian Pure-Play Licensed Producers (LPs) Pot Stock Index and the American Pure-Play Multi-State Operators (MSOs) Pot Stock Index. Which performed the best last week and has performed the best year-to-date: LPs or MSOs? This article has the answers.

*The criteria for inclusion in the munKNEE marijuana indices are vertically integrated (seed-to-sale) companies that derive 100% of their revenue from the sector, have a market capitalization in excess of US$300K, and trade for at least US$1/share. Only 6 Canadian LP stocks and 17 American MSO stocks meet those criteria.

The munKNEE Canadian Pure-Play Licensed Producers Pot Stock Index

  • was +0.3% last week and
  • is now -6.9% YTD.
    • Its constituents are: Canopy (CGC), Tilray (TLRY), Cronos (CRON), Aurora (ACB),  Hexo (HEXO) and Organigram (OGI), and .
    • None of the 6 constituent stocks in the sub-category changed in price by 5% or more.

The munKNEE American Pure-Play Multi-State Operators Pot Stock Index

  • was -0.5 last week and
  • is now +4.4% YTD.
    • Its constituents are:  Curaleaf (CURLF), Green Thumb (GTBIF), Trulieve (TRSSF), Verano  (VRNOF),  Cresco (CRLBF)TerrAscend (TRSSF), Columbia (CCHWF), Harvest Health  (HRVSF),   Ascend  Wellness (AAWH), Planet 13 (PLNHF), Ayr (AYRWF), Jushi (JUSHF), 4 Front (FFNTF), Charlotte's Web (CWBHF), Gage (GAGE), Acreage (ACRDF & ACRHF) and Goodness Growth (GDNSF).
      • 7 of the 17 constituent stocks advanced in price last week but only 3 did so by more than 5% while another 2 declined by 5% or more. The details are as follows in descending order with their year-to-date percentage changes in brackets:
        1. Goodness Growth: +12.0%; (now +7.4% YTD)
        2. Verano: +11.4%; (still -46.9% YTD)
        3. Columbia Care: +8.1%; (still -26.9% YTD)
        4. TerrAscend: -6.0%; (now -32.4%)
          • - announced they will acquire cannabis brand and operator Gage Growth in a stock deal worth ~$545M.
        5. 4 Front Ventures: -7.2%; (now +13.2%)

Summary:

In total, the Pure-Play "Seed-to-Sale" Pot Stocks Index declined -0.3%  last week and is now only +1.4% YTD while

  • the Canadian Pure-Play Licensed Producers Pot Stock Index
    • out-performed the MSO sub-index last week, at +0.3% versus -0.5% for the MSO sub-index but has
    • under-performed the MSO sub-index YTD, at -6.9% versus +4.4% for the MSO sub-index.

The above non-tradable indices replicate the performance of a portfolio investing an equal amount of money in each company in the cannabis categories, with daily rebalancing to maintain equal weight.

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