Cannabis Central: Pure-Play Pot Stock Index Flat On Tuesday

The munKNEE.com Pot Stock Index of the 25 pure-play* cannabis stocks that trade for more than US$1/share advanced 0.56% on Tuesday with 14 constituents advancing, 10 declining and 1 with no change in price. The details are as follows:

Only 2 constituents advanced by 5% or more namely:

  1. Acreage (ACRGF) +8.2%
  2. cbdMD (YCBD) +5.5%

12 other constituents advanced and 1 had no change in price.

Only 1 constituent declined by 5% or more, namely:

  • Medicine Man (SHWZ) -5.1% vs. +7.9% on Monday and +5.8% last Friday

9 other constituents declined.

The constituents operate in 4 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 21 companies that grow, process, and sell cannabis and hemp flower and related products and it advanced 0.7%.
    • the 7 constituents that are Canadian Licensed Producers (LPs) advanced 0.6%, on average. They are:
    • the 12 constituents that are U.S. Multi-State Operators (MSOs) advanced 0.4% on average. They are:
    • the 2 MSO constituents that are only involved in the seed-to-sale of CBD from hemp advanced 4.3%, on average. They are:
  2. The Extraction Category consists of companies focused on the extraction of cannabis compounds and their infusion into consumer products and it declined 0.5%, on average.
    • 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. Its price declined 3.5%.
    • the 1 constituent in this category is GNLN
  4. The Biotechnology Category consists of pharmaceutical companies marketing new drugs and products utilizing cannabinoids (CBD) and the category had no change in price.
    • the 1 constituent in this category is AVCNF

*The 25 pure-play constituents in the munKNEE.com Pot Stock Index (PSI) are just that - pure - deriving 100% of their revenue from the sale of recreational and medicinal cannabis products and consumption devices to reflect the true health of the marijuana industry in the U.S. and Canada. As a result, the PSI excludes the following 12 ancillary companies often included in marijuana ETFs and industry tracking indices:

  • GW Pharmaceuticals (GWPH): a bio-pharmaceutical company that generates 90% of its revenue from one cannabis-based product;
  • Cara (CARA), Corbus (CRBP), Zynerba (ZYNE) and XPhyto (XPHYF): bio-pharmaceutical companies doing research into the development of pharmaceuticals containing CBD and/or THC; 
  • GrowGeneration (GRWG) and Scotts Miracle-Gro (SMG): companies supplying hydroponic equipment and marijuana-infused fertilizer, respectively; 
  • Innovative Industrial Properties (IIPR): a real estate investment trust (REIT) engaged in the acquisition and management of growing/processing facilties that are leased back to state-licensed operators; 
  • New Age Beverages (NBEV): a beverage company in the process of developing a marijuana-infused line of drinks; 
  • Alcanna (LQSIF): a retail liquor chain in Alberta, Canada, that also sells recreational marijuana products; 
  • Alkerna (KERN): a technology company that provides a central data management system for tracking regulated cannabis products and 
  • Village Farms (VFF): a grower and marketer of greenhouse produce and in a 57.4% joint venture with the private seed-to-sale Licensed Producer, Pure Sunfarms.

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