The 5 largest licensed producers (LPs), as tracked in our munKNEE Canadian Cannabis LPs Index, are ranked below, in descending order, as to their:

• stock performance in April and year-to-date (YTD),
• likelihood of Financial Distress within the next 2 years (source: macroaxis.com),
• average Wall Street analyst 12-month Price Target (source seekingalpha.com),
• extent of Short Interest (the number of shorted shares divided by the number of shares outstanding),
• percentage of Insider Ownership (directors and senior officers or other beneficial holders with 10% or more of the common shares),
• percentage of Institutional Ownership, and
• Market Capitalization.

1. Cronos (CRON): down 3.6% in April; now down 25.8% YTD
   • 18 analysts:
     • have an average 12-month price target representing a 52.4% increase from its current price and
     • have a consensus BUY rating.
   • In addition, CRON has:
     • only a 2% chance of Financial Distress within 2 years,
     • 3.7% Short Interest,
     • 5.4% Insider Ownership,
     • 13.1% Institutional Ownership, and
     • $703M in Market Capitalization.
   • Altria Group (MO) has a 45% stake in CRON
2. Tilray (TLRY): down 7.1% in April; now down 12.0% YTD
   • 22 analysts:
     • have an average 12-month price target representing a 85.1% increase from its current price and
     • have a consensus BUY rating.
   • In addition, TLRY has:
     • 68% chance of Financial Distress within 2 years,
     • 8.1% Short Interest,
     • 1.3% Insider Ownership,
     • 11.4% Institutional Ownership and
     • $1.4B in Market Capitalization.
   • Anheuser-Busch (BUD) has a $100 million joint venture with TLRY.
3. Aurora (ACB): down 14.2% in April; now down 32.6% YTD
   • 14 analysts:
     • have an average 12-month price target representing a 171.7% increase from its current price and
     • have a consensus HOLD rating.
   • In addition, ACB has:
     • 78% chance of Financial Distress within 2 years,
     • 8.7% Short Interest,
     • 0.12% Insider Ownership,
     • 21.8% Institutional Ownership, and
     • $205M in Market Capitalization.
   • received a Nasdaq notice on March 27th that the company is no longer in compliance with the minimum bid price requirement as the price has been below $1.00 for a period of 30 consecutive business days and has been granted a period of 180 calendar days or until September 20, 2023 to regain compliance with the minimum bid price requirement.
4. OrganiGram (OGI): down 21.9% in April; now down 35.9% YTD
   • 15 analysts:
     • have an average 12-month price target representing a 162.0% increase from its current price and
     • have a consensus BUY rating.
   • In addition, OGI has:
     • 49% chance of Financial Distress within 2 years,
     • NIL Short Interest,
     • 0.09% Insider Ownership,
     • 11.3% Institutional Ownership. and
     • $166M in Market Capitalization.
   • British American Tobacco (BTI) has invested C$221M in a product development partnership with OGI
5. Canopy Growth (CGC): down 25.7% in April; now down 42.7% YTD
   • 23 analysts:
     • have an average 12-month price target representing a 97.7% increase from its current price and
     • have a consensus SELL rating.
   • In addition, CGC has:
     • 53% chance of Financial Distress within 2 years,
     • 16.1% Short Interest,
     • 0.08% Insider Ownership,
     • 13.5% Institutional Ownership, and
     • $678M Market Capitalization.
   • Constellation Brands (STZ) has a 39% stake in CGC.

Summary

The munKNEE Canadian Cannabis LPs Index was down 12.4% in April and is now down 27.5% YTD. The average 12-month price target represents a 92.0% increase from its current price. In comparison, the 7 constituents in the munKNEE American Cannabis MSOs Index was UP 2.4% in April but is still down 18.2% YTD.

If you are interested in buying a basket of Canadian cannabis licensed producer (LP) stocks consider the Global X Cannabis ETF (POTX) that consists of the above 5 highlighted Canadian stocks plus another 12 cannabis or cannabis-related (i.e. auxiliary) stocks. It was -9.8% in April and is now -26.3% YTD, in comparison.

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