E Cannabis Central's April Recap: 83% Of NPSI Constituents Went Up

Despite the volatility in the cannabis sector this past month its components did extremely well in April advancing by 10.8% with the Non-Penny Pot Stock Index (NPSI) slightly outperforming the overall sector with a 11.3% return. 

The NPSI tracks the performance of the 35 cannabis stocks that trade for a minimum of US$1/share (representing 12% of the universe of 298 companies). Below are the details of the returns of each constituent  within each of the 9 categories that represent their primary area of focus in the cannabis industry.

Before proceeding let's put things in perspective.

  1. Of the 35 eligible stocks in the NPSI,
    • 29 (83%) went UP in April,
    • 6 (17%) went DOWN and
    • the average price change was +11.3%;
  2. The average return for the 2 broadest tracking indexes for the industry as a whole was +10.8% and
  3. the average return for the 4 marijuana ETFs that make up the broadest range of pot stocks was +9.5%.

Further details regarding the constituents of the new NPSI are as follows:

1. Price Range/Share

  • 2 trade above US$20/share,
  • 3 trade between US$10 and US$20/share,
  • 6 trade between US$5 and US$10/share and
  • 24 trade between US$1 and US$5/share. (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 88% of the total universe trades, so the more literal definition of stocks that trade for less than US$1/share is used.)

2. Market Cap/Constituent

The market capitalization makeup of the NPSI (calculated by multiplying the number of a company's shares outstanding by its stock price per share, is as follows:

  • Large-Cap (+US$10B): 0
  • Mid-Cap (US$2B to US$10B): 3
  • Small-Cap (US$300M to US$2B): 11
  • Micro-Cap (US$50M to US$300M): 17
  • Nano-Cap (Less than US$50M): 4

The performance of the NPSI constituents are presented below within each of the 9 categories in alphabetical order to allow for performance comparisons within similar areas of focus:

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This article may discuss small-, micro- and nano-cap stocks so do your own careful due diligence. Visit   more

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