Cannabis Central: Pot Stock Index Went Flat On Friday

The munKNEE Pure-Play* Pot Stock Index was flat (+0.1%) on Friday with 13 of the 25 constituents advancing and 12 declining. Only 2 went UP by more than 5% and only 3 went DOWN by 5% or more. In addition, 2 of the 3 industry categories went UP as well. Details are as follows:

Index Performance

The Index has companies doing business in a number of different categories and sub-categories based on their primary area of focus in the cannabis industry. Those categories are identified below along with the index constituents within each category that went up or down by 5% or more:

  1. The Vertically Integrated (i.e. Seed-to-Sale) Category has 22 index constituents that grow, process, and sell cannabis and hemp flower and related products and it went up 0.04%.
    1. the Canadian Licensed Producer (LPs) has 7 index constituents and it went down 1.7%, on average, with only one constituent moving in price by 5% or more, namely Aurora (ACB)  down 6.3% 
    2. the U.SMulti-State Operator (MSOs) Category has 13 index constituents and it went up 0.04%, on average, with two stocks going down by 5% or more, namely, Medicine Man (SHWZdown  6.0% and Harvest Health (HRVSFdown 6.0%.
    3. The hemp seed-to-sale MSO sub-category has two index constituents and it went up 6.3%, on average, with Charlotte's Web (CWBHF) up 10.4%.
  2. The Extraction Category has two index constituents focused on the extraction of cannabis compounds and their infusion into consumer products and it went up 5.7%, on average, with only one constituent changing price by 5% or more, namely Valens (VLNCF) up 7.2%.
  3. The Consumption Devices Category has only one index constituent focused on developing and selling personal consumption devices for cannabis consumers such as vape pens and inhalers, namely, Greenlane (GNLN), and it went down 2.1%.

*Please note: Each of the 25 pure-play stocks in the munKNEE Pure-Play Pot Stock Index are just that, pure, deriving 100% of their revenue from the sale of recreational and medicinal cannabis and consumption-related products and, as such, the Index reflects the true health of the marijuana industry in the U.S. and Canada. In addition, the Index only includes those pure-play cannabis stocks that consistently trade for more than US$1/share.

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William K. 4 years ago Member's comment

This collection of stocks, the munKNEE Pure-Play* Pot Stock Index, is the exact opposite of diversified. It represents a place for investment in a new sector, which seems like a worthwhile offering. As such it is a FOCUSED index, not really diversified at all.

Being different also means that it will not perform the same as those highly diversified entities that try to avoid experiencing flat spots or slumps.

So to state the very obvious, if you are different, you are not the same.