Cannabis Central: Pot Stock Index -2.3% So Far In June

munKNEE.com tracks the performance of four (4) cannabis and cannabis-related pot stock categories which provides the clearest overview of the cannabis stock sector that is available anywhere. Below is a comparison of how each sub-category performed during the first two weeks of June and YTD, and in total.

  1. The Canadian Pure-Play Licensed Producers Pot Stock Index of 6 constituents tracks the performance of those Canadian producers that derive 100% of their revenue from the marijuana sector, trade for at least US$1/share and have a Market Capitalization of at least US$100M.
    • It was +3.4% during the first two weeks of June and is now +39.7% YTD with an average Beta of 2.11 and an average Market Capitalization of US$3.6B.
    • Its constituents are: Canopy (CGC), Tilray (TLRY), Cronos (CRON), Aurora (ACB), Organigram (OGI) and Hexo (HEXO).
      • Canopy Growth advanced +19.3% over the first two weeks of June almost entirely driven by unusual buying activity in its option chains by members of the r/WallStreetBets subreddit, which led to a small gamma squeeze .
  2. The Cannabis-Centric BioPharma Stock Index of 7 constituents tracks the stock performance of those clinical-stage biopharmaceutical companies involved in the exclusive development of drugs using CBD and THC and have a Market Capitalization of US$50M or more.
    • It was +0.8% during the first two weeks of June and is now +14.8% YTD with an average Beta of 2.9 and an average Market Capitalization of US$109M.
    • Its constituents are: Corbus (CRBP), Zynerba (ZYNE), MGC (MGCLF), Revive (RVVTF), Zelira (ZLDAF), Tetra Bio (TBPMF) and Enveric (ENVB).
  3. The Ancillary Pot Stock Index of 8 constituents tracks the performance of companies that provide goods and services to cannabis operators and have a Market Capitalization of at least US$100M.
    • It was -2.7% during the first 2 weeks of June and is now +31.4% YTD with an average Beta of 2.2 and an average Market Capitalization of US$3.2B.
    • Its constituents are: Scotts Miracle-Gro (SMG), Innovative REIT (IIPR), Grow Generation (GRWG), Hydrofarm (HYFM), Turning Point (TPB), Village Farms (VFF), Forian (FORA) and AFC Gamma (AFCG).
  4. The American Pure-Play Multi-State Operators Pot Stock Index of 17 constituents tracks the performance of those multi-state marijuana companies that derive 100% of their revenue from the sector, trade for at least US$1/share and have a Market Capitalization in excess of US$100M.
    • It was -3.0% during the first two weeks of June and is now +19.7% YTD with an average Beta of 2.69 and an average Market Capitalization of US$227M.
    • Its constituents are: Curaleaf (CURLF), Green Thumb (GTBIF), Trulieve (TRSSF), Verano (VRNOF), Cresco (CRLBF), TerrAscend (TRSSF), Columbia (CCHWF), Harvest Health (HRVSF), Ascend (AAHW), Planet 13 (PLNHF), Ayr (AYRWF), Jushi (JUSHF), 4 Front (FFNTF), Charlotte's Web (CWBHF), Gage (GAGE), Goodness Growth (GDNSF) and Acreage (ACRDF & ACRHF).
      • Vireo Health changed its name to Goodness Growth and is now trading under the ticker symbol GDNS on the Canadian Canadian Securities Exchange (CSE) and with the GDNSF ticker symbol on the OTCQX Market in the United States. In spite of the good news around the name change the stock declined -8.2% last week and was -13.1% over the first two weeks of June but remains +43.9% YTD.

The above 4 non-tradable indices replicate the performance of a portfolio investing an equal amount of money in each company in the various cannabis categories, with daily rebalancing to maintain equal weight.

The Conservative Pot Stock Index of 8 constituents tracks the performance of the major tobacco, beer/liquor, and other companies that have bought into marijuana companies and compares their performances with those of their associated marijuana companies.

  • It was +1.5% during the first two weeks of June and is now +11.3% YTD with an average dividend yield of 2.5%, an average Beta of 0.96 and an average Market Capitalization of $81.6B per constituent compared to its associated marijuana companies which were +7.2% during the first two weeks of June yet are now +58.9% YTD, on average with betas of 1.91, on average, and pay out no dividends.
  • Its constituents are: Altria (MO), Imperial Brands (IMBBY), Constellation (STZ), Molson Coors (TAP), Anheuser Busch (BUD), Novartis (NVS), Couche-Tard (ANCUF) and British American (BTI). 

Excluding the Conservative Pot Stock Index the combined munKNEE Pot Stock Index tracks 38 out of a universe of more than 217 (i.e. 17.5%) cannabis companies and, on average, they were -2.3% during the first two weeks of June and are +29.3% YTD.

 

Others have made efforts to track the movement of the pot and pot-related stock sector but none breaks out the performance of the marijuana sector by category to provide a full understanding of how ...

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