Cannabis Central: Pure-Play Pot Stock Portfolio Tanked On Monday

All but 3 of constituents in the Pure-Play Pot Stock Portfolio of the 25 pure-play cannabis stocks that trade for more than US$1/share went DOWN 3.7% on Monday as did all 4 of the industry categories in which they operate. The details are as follows:

Monday's Major Winners and Losers

  • No stocks advanced by 5% or more. The 3 that did advance did so marginally - Organigram (OGI) +4.4%; Curaleaf (CURLF) +2.7%; Medicine Man (SHWZ) +0.1%.
  • 8 stocks declined by more than 5%, namely: 
    1. Avicanna (AVCNF) -7.8%
    2. cbdMD (YCBD) -7.0%
    3. Greenlane (GNLN) -6.6%
    4. Tilray (TLRY) -6.4%
    5. Charlotte's Web (CWBHF) -5.6%
    6. Harvest Health (HRVSF) -5.3%
    7. Trulieve (TCNNF) -5.2%
    8. Aphria (APHA) -5.1%

The 25 munKNEE Pure-Play Pot Stock Portfolio includes companies doing business in 4 categories based on their primary area of focus in the cannabis industry. The categories are identified below with how they performed given the performance of the stocks in the portfolio that make up each category:

  1. The Vertically Integrated (i.e. Seed-to-Sale) Category has 21 portfolio participants that grow, process, and sell cannabis and hemp flower and related products and it was DOWN 3.6%.
  2. The Extraction Category has 2 portfolio participants (NEPT and VLNCF) focused on the extraction of cannabis compounds and their infusion into consumer products and they went DOWN 3.6%, on average.
  3. The Consumption Devices Category has only 1 portfolio participant  (GNLN) focused on developing and selling personal consumption devices for cannabis consumers such as vape pens and inhalers and it went DOWN 6.6% in price.
  4. The Biotechnology Category has only 1 portfolio participant (AVCNF) which markets new drugs utilizing cannabinoids (CBD) and it went DOWN 7.8%.

*Please note: The 25 pure-play stocks in the munKNEE Pure-Play Pot Stock Portfolio are just that, pure, deriving 100% of their revenue from the sale of recreational and medicinal cannabis and consumption-related products and, as such, it reflects the true health of the marijuana industry in the U.S. and Canada.

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Cannabis Stock Buyer 4 years ago Member's comment

Thanks for the info, Lorimer.

William K. 4 years ago Member's comment

Given that seemingly ALL of the stocks dropped creates a question of why? And What do they al have in common? If it is the same group of investors owning most of the shares, that could be very interesting.

My guess, however, is that the number of folks who are presently interested in owning cannabis business stocks is a bit limited, and quite a bit less than a huge multitude. And like a lot of things, once the need is satisfied the demand drops. With the reduced demand the bid-up prices are re-adjusting to a prior and more sensible level.

Thus now is the time to hold the stocks patiently and wait for those dividend payments to arrive. It is not a disaster, it is an adjustment.