The NPSI declined 0.3% on Monday with 10 of the revised 25 constituents going UP, 11 going DOWN and 4 having no change in price. In addition, all 3 sector categories advanced. The details are below.

(Over the past weekend I revamped the Index to more accurately reflect the true health of the cannabis sector by concentrating exclusively on pot stocks that, in addition to trading above US$1/share, are also seen as "pure plays". To that end, the NPSI now excludes non-penny bio-pharmaceutical (GW Pharma & XPhyto), real estate investment trust (Innovative Industrial Properties) and product research & development companies (New Age Beverages) from the list of constituents. In doing so, the index has been reduced from 29 to 25 constituents.)  

On Monday:

• only 4 constituents increased more than 5%, namely Medicine Man (SHWZ) +20.7%; Village Farms (VFF) +6.3%: Charlotte's Web (CWBHF) +5.6% and Aphria (APHA) +5.4% and
• no constituent declined by 5% or more. 

Interestingly, the 8 Canadian Licensed Producers ( LPs) in the index advanced by 1.1% while the 11 American Multi-State Operators (MSOs) declined by 0.2% and the 3 hemp MSOs advanced by 3.0%.

Given the above mentioned changes the equally-weighted index now includes:

• 4 constituents that trade between US$10 and US$20/share,
• 4 trade between US$5 and US$10/share and
• 17 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 90% 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 (calculated by multiplying the number of a company's shares outstanding by its stock price per share) now consists of:

• Large-Cap (+US$10B): 0
• Mid-Cap (US$2B to US$10B): 2
• Small-Cap (US$300M to US$2B): 9
• Micro-Cap (US$50M to US$300M): 14

In addition, the constituents now operate in just 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 on Monday:

1. Vertically Integrated (i.e. Cultivation to Retail) Category: +0.4%
   • 8 constituents are Canadian Licensed Producers (LPs), namely:  
     • ACB; APHA; CGC; CRON; OGI; ROMJF; TLRY and VFF
   • 11 constituents are U.S. Multi-State Operators (MSOs), namely:
     • ACRGF; AYRSF; CCHWF; CRLBF; CURLF; GTBIF; JUSHF;   PLNHF; SHWZ; TRSSF and TCNNF
   • 3 constituents are only involved in the seed-to-sale of CBD from hemp, namely:
     • AVCNF; CWBHF and YCBD
2. Extraction Category: +0.2%
   • 2 constituents are in this category, namely: NEPT and   VLNCF   
3. Consumption Devices Category: -3.7% 
   • 1 constituent is in this category, namely: GNLN

Share your views in the Comment section below and, in doing so, you will automatically be entered into TalkMarket's contest to win a free Echo Show.