This article discusses small-, mid- and micro-cap stocks so do your own due diligence.

The equal-weighted, pure-play Non-penny Pot Stock Index (NPSI) out-performed the TSX (-0.2%), TSXV (-0.2%), DJIA (-0.8%), Nasdaq (-1.3%)  NEO (-4.2%) and OTC (+0.7%) on Tuesday advancing 6.6%. 21 of the 25 constituents went UP, only 4 went DOWN and 2 of the 3 associated sector categories advanced. The details are as follows:

Biggest Winners

• 10 constituents went UP in excess of 5%, namely:
  1. Canopy Growth (CGC) +14.9%
     • announced Monday that its online CBD outlet, ShopCanopy.com, is now open for business in the U.S. market.
  2. Columbia (CCHWF) +11.3%
     • announced the close of its sale-leaseback transaction with Innovative Industrial Properties (IIPR) valued at approximately $14 million.
  3. Tilray (TLRY) +10.2%
  4. Acreage (ACRGF) +9.7% 
  5. Aurora (ACB) +9.6%
  6. Greenlane (GNLN) +9.0%
  7. Cronos (CRON) +7.6%
  8. Curaleaf (CURLF) +7.2%
  9. TerrAscend (TRSSF) +6.9%
  10. AYR (AYRSF) +6.8%
• 11 other constituents went UP by less than 5%.

Biggest Losers

• 4 constituents went DOWN 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. If they can do so between now and the end of the month they will be added to the index.

The NPSI went UP 4.2% yesterday (Monday). See the details here.

Further details regarding the equal-weighted index are as follows:

• 4 constituents trade between US$10 and US$20/share,
• 7 trade between US$5 and US$10/share and
• 14 trade between US$1 and US$5/share. 
  • The official definition of a "penny" stock is one that trades below US$5/share but, when it comes to pot stocks, that is where 92% of the total universe trades, so the more literal definition of stocks that trade for less than US$1/share is used. 

The market capitalization makeup of the NPSI 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

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:

1. 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 6.8% on the day.
   • the 8 constituents that are Canadian Licensed Producers (LPs) advanced by 6.8%, on average, on the heels of a 4.1% advance on Monday.
     • ACB; APHA; CGC; CRON; OGI; ROMJF; TLRY and VFF
   • the 11 constituents that are U.S. Multi-State Operators (MSOs) increased 4.9%, on average, on the heels of a 4.5% increase 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 by 1.7% on the heels of a 2.9% increase on Monday.
     • AVCNF; CWBHF and YCBD
2. The Extraction Category consists of companies focused on the extraction of cannabis compounds and their infusion into consumer products and it declined 0.7% following a 0.9% advance on Monday.
   • the 2 constituents in this category are NEPT and VLNCF 
3. The Consumption Devices Category consists of companies focused on developing and selling personal consumption devices for cannabis consumers such as vape pens and inhalers and it advanced 9.0% on the day on the heels of a 4.9% increase 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 and 
2. Cannabis Central: Not All Pot Stocks Are Losers: These 10 Are UP An Average Of 23% YTD.

I look forward to receiving your views or questions regarding the above article in the Comment section below.