Cannabis Central: Revised NPSI Now More Accurately Reflects The Sector Performance - Check It Out
TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.
The NPSI declined 0.85% on Monday with 13 of the 29 constituents going DOWN, 14 going UP and 2 having no change in price. In addition, 4 of the 7 sector categories advanced. Below are the details.
The pot stock universe has 400+ pure-play, cannabis-related and ancillary securities listed on the various Canadian and American stock exchanges of which approx. 300 actively trade. Only 36 of those 300 stocks trade for at least US$1/share and, as such, were included in my proprietary Non-penny Pot Stock Index. Over the past weekend, however, I tightened up the Index to more accurately reflect the true performance of the cannabis sector by excluding:
- 5 biopharma companies that were doing research into the development of pharmaceuticals containing either CBD and/or THC but had not, as yet, introduced any such products into the marketplace, namely: (Cara - CARA, Corbus - CRBP, FSD - HUGE, Xphyto -XPHYF and Zynerba - ZYNE) leaving just GW Pharmaceuticals (GWPH) in the index,
- 1 garden center/horticulture equipment supply company, namely GrowGeneration (GRWG),
- 1 retail liquor chain (Alcanna - LQSIF) that also sold recreational marijuana products and
- 1 technology company (Akerna - KERN) that provides a central data management system for tracking regulated cannabis products.
and added Jushi (JUSHF) which is now consistently trading above US$1/share.
On Monday, only 2 constituents, namely Rubicon (ROMJF) and Greenlane (GNLN) increased more than 5% (7.3% and 6.5%, respectively) and no constituent declined by 5% or more.
Further details regarding the current constituents of the NPSI are as follows:
- 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.
- In addition, the constituents operate within 9 categories, based on their primary area of focus in the cannabis industry (see descriptions of each category here), and the constituents within each category are identified below with how each of the 7 categories did on Monday:
- Vertically Integrated (i.e. Cultivation to Retail) Category: +0.4%
- Extraction Category: -1.6%
- Biopharmaceutical Category: -3.0%
- Only 1 constituent is in this category, namely: GWPH
- Marijuana-Infused Products Category: -3.5%
- Only 1 NPSI constituent is in this category, namely: NBEV
- Consumption Devices Category: +6.5%
- Only 1 NPSI constituent is in this category, namely: GNLN
- Agricultural Technology Category: +1.0%
- Only 1 constituent is in this category, namely: VFF
- Real Estate Category: +0.3%
- Only 1 constituent is in this category, namely: IIPR
Please share with other readers of this article in the Comment section below which, if any, of the above stocks you might well invest in and, in doing so, you will automatically be entered into TalkMarket's contest to win a free Echo Show.
Incidentally, to see how the new Non-penny Pot Stock Index (NPSI) has done on an almost daily basis recently go here.
This article may discuss small-, micro- and nano-cap stocks so do your own careful due diligence. Visit more