TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence. 

Only the 25 pure-play* pot stocks trade that above US$1/share are constituents of munKNEE.com's Pot Stock Index and, even with the 4 stock exchanges in Canada being closed on Monday due to a country-wide civic holiday, they were up a respectable 2.7%. Indeed, 19 of the constituents were up as were 2 of the 3 associated sector categories. The details are as follows:

Biggest Winners

• 5 constituents went UP in excess of 5%, namely:
  1. Jushi (JUSHF) +12.2%
  2. TerrAscend (TRSSF) +7.2%
  3. Neptune (NEPT) +6.8%
  4. Curaleaf (CURLF) +6.4%
  5. Columbia (CCHWF) +5.5%  

• 14 other constituents went UP by less than 5%.

Biggest Losers

1. Medicine Man (SHWZ) -14.8%
2. Rubicon (ROMJF) -11.2%

• 4 other constituents went UP by less than 5%.

Harvest Health (HRVSF) and IMCannabis (IMCNF) are on the verge of being included in munKNEE.com's NPSI but have not yet been able to consistently stay above US$1/share.

Further details regarding the equal-weighted Pot Stock Index are as follows:

1. As a point of clarification, the 25 pure-play constituents in the PSI are just that - pure - deriving 100% of their revenue from the sale of cannabis or cannabis-related products. That being the case, unlike every marijuana ETF (see this TalkMarkets article for details) and every other cannabis tracking index (see this TalkMarkets article for details), the PSI inclusion criteria excludes those "wanna-be" marijuana companies (itemized below) who generate little, if any, of their total revenue from the cannabis industry so as to reflect the true health of the marijuana industry in the U.S. and Canada, namely:

• those pharmaceutical companies hoping to include cannabis in future products (GW Pharma only has one such product),
• those tobacco/alcohol companies with part ownership in marijuana companies (read this TalkMarkets article for details),
• those companies trying to develop marijuana-infused consumer products,
• those retailers who also sell some cannabis products,
• those horticultural and construction companies who do business with marijuana companies,
• those business service/consulting companies who have marijuana companies as clients, and
• those real estate investment trusts who do business with marijuana companies.

2. The market capitalization makeup of the PSI is as follows:

• Large-Cap (+US$10B): 0
• Mid-Cap (US$2B to US$10B): 4
• Small-Cap (US$300M to US$2B): 9
• Micro-Cap (US$50M to US$300M): 11
• Nano-Cap (<US50M) 1
• Average Market Cap: US$963M

3. In addition, the constituents operate in 3 categories based on their primary area of focus in the cannabis industry and the constituents within each category are identified below with how each of the categories did:

• The Vertically Integrated (i.e. Seed-to-Sale) Category consists of 22 companies that grow, process, and sell cannabis and hemp flower and related products and it advanced 2.7% on Monday.
  • the 8 constituents that are Canadian Licensed Producers (LPs) advanced 1.7%, on average, on Monday.
    • ACB; APHA; CGC; CRON; OGI; ROMJF; TLRY and VFF
  • the 11 constituents that are U.S. Multi-State Operators (MSOs) advanced 3.8%, on average, on Monday.
    • ACRGF; AYRSF; CCHWF; CRLBF; CURLF; GTBIF; JUSHF; PLNHF; SHWZ; TRSSF and TCNNF
  • the 3 constituents that are only involved in the seed-to-sale of CBD from hemp advanced 1.0%, on average, on Monday.
    • AVCNF; CWBHF and YCBD
• The Extraction Category consists of companies focused on the extraction of cannabis compounds and their infusion into consumer products and it advanced 3.7%, on average, on Monday.
  • the 2 constituents in this category are NEPT and VLNCF 
• The Consumption Devices Category consists of companies focused on developing and selling personal consumption devices for cannabis consumers such as vape pens and inhalers. It declined 2.6% on Monday. 
  • the 1 constituent in this category is GNLN

You have shown a serious interest in the cannabis sector by reading this article to the very end so don't stop here. Check out the following exclusive articles posted recently on TalkMarkets for more information on the marijuana market that is not to be found anywhere else, namely: 

1. "Marijuana" ETFs: A Troubling Expose 
2. Cannabis Central: Not All Pot Stocks Are Losers: These 10 Are UP An Average Of 23% YTD. and
3. Cannabis Central: These 8 Pot Stocks Have Gone Down 40% To 60% YTD

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