Canadian LP Cannabis Stocks Continue To Plummet

The munKNEE pure-play Canadian LPs Pot Stocks Index consists of the 5 largest vertically integrated (i.e. seed-to-sale) Canadian Licensed Producers (LPs). Below are the performances of its constituents for this week, in descending order, so far in September (MTD) and so far this year (YTD) with the latest in analysis and commentary on each of the companies to be found here:

  1. Cronos (CRON): DOWN 5.6% this week; DOWN 3.7% MTD; DOWN 24.2% YTD
  2. Canopy Growth (CGC): DOWN 10.4% this week; DOWN 17.9% MTD; DOWN 67.5% YTD
  3. Organigram (OGI):DOWN 11.0% this week; DOWN 13.6% MTD; DOWN 49.1% YTD
  4. Tilray (TLRY): DOWN 14.7% this week; DOWN 19.0% MTD; DOWN 61.3% YTD
  5. Aurora (ACB):DOWN 16.1% this week; DOWN 20.5% MTD; DOWN 77.8% YTD

In total, the munKNEE Canadian Pot Stocks Index overall was DOWN 11.2% (DOWN 7.9% last week), has gone DOWN 14.8% MTD and is now DOWN 60.8% YTD. (In fairness, keep in mind that some of those individual weekly and monthly numbers are not much worse than the overall markets.)

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 DOWN 12.1% this week and is DOWN 16.9% MTD but "only" DOWN 60.5% 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)

Incidentally, the 13 stocks that make up the munKNEE American MSOs Pot Stocks Index are performing even worse than the Canadian LPs, going DOWN 14.7% this week, DOWN 28.6% MTD and Down 62.8% YTD. Details by constituents will follow in my next article.


More By This Author:

Aurora Cannabis Announced Disappointing Q4 Results Today
The 5 Cannabis Categories Declined Between 3% And 11.5% Last Week
Plant-Based Food Stocks Continue To Wilt

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