Almost all the largest cap "seed-to-sale" cannabis stocks advanced (+5.3%) this week for the second week in a row. The sector is still down -7.2% YTD but does this recent uptrend suggest that now is the time to buy one or two of these still deeply discounted cannabis stocks? 

The munKNEE "Seed-to-Sale" Pot Stocks Index consists of:

• the 21 non-ancillary (i.e. pure-play) vertically integrated cannabis companies whose stocks trade for at least US$1/share (4Front Ventures is the only exception), have a market cap of at least US$200M, and trade on one or more of the Canadian and/or American stock exchanges. It includes
  • 5 Canadian Licensed Producers (LPs) and
  • 16 American Multi-State Operators (MSOs) which, in total,
  • represent 10% of the total universe of 209 cannabis and ancillary companies currently trading.

Our non-tradable Index gives each constituent the same importance to provide a comparison of the performance of each with the others and the stated sector as a whole.

Image source

Our Pure-Play Canadian LP Pot Stock Index

Note that each constituent has 5 areas of additional information that are imperative for any individual considering investing in this sector:

1. The company name is hyperlinked to its website to provide you with a description of the company and an analysis of its stock.
2. The trading symbol is hyperlinked to additional financial data and commentary on the company (where available).
3. The "financial distress" percentage is sourced from macroaxis.com (visit the site and type in the stock symbol to obtain detailed financial data on the health of the company).
4. The percentage change is hyperlinked to a chart of the company's stock performance.
5. The articles hyperlinked are sourced from Stone Fox Capital and/or Technical420 and provide analyses/commentaries on most of the constituents below to help a potential investor with insights into the burgeoning, yet volatile, cannabis sector.

Below is how the Canadian Licensed Producer constituents performed during the second week of February, in descending order with their year-to-date performances in brackets:

1. Tilray (TLRY): +19.7% last week; (+1.3% YTD)
   • Has a +63% chance of experiencing financial distress in the next few years of operation
   • Read:
     • Tilray: Numbers Keep Getting Worse
2. Canopy Growth (CGC): +17.5%; (+5.6% YTD)
   • Has a +61% chance of experiencing financial distress in the next few years of operation
   • Read:
     • Will Canopy Growth Ever Reclaim Its Title As “King Of The Cannabis Industry”?
     • Canopy Growth: Don't Chase Horrible Results
     • Canopy Growth Reports Horrible Q3 Financial Results
3. Organigram (OGI): +13.2%; (-1.7% YTD)
   • Has less than a 1% chance of experiencing financial distress in the next few years
   • Read:
     • Organigram Holdings Had A Pretty Strong 2021 And Are Full Steam Ahead Going Into 2022,
     • OrganiGram: Positive Signs, But Struggles Persist
4. Cronos (CRON): +11.3%; (+3.1% YTD)
   • Has a 50% chance of going through some form of financial distress in the next two years
   • Read:
     • Cronos Group: Still No Reason To Own
     • The Cronos Group Could Be A Valuable Asset If They Ever Decide To Get Their Act Together
5. Aurora (ACB): +6.7%; (-17.0% YTD)
   • Has a 49% chance of going through some form of financial distress in the next two years
   • Read:
     • Aurora Cannabis: Investors Should Have No Confidence In This Company
     • Aurora Cannabis Q2 Financial Results Show No Reduction In Net Loss

Our Pure-Play Canadian LP Pot Stock Index advanced +14.8% last week but is still down -0.9% YTD and down a whopping -83.9% from their collective highs in 2021.

Our Pure-Play American MSO Pot Stock Index 

Below is how the American Multi-State Operator constituents performed during the second week of February, in descending order, with their year-to-date performances in brackets:

1. Valens (VLNS): +50.0% from last week; (+6.5% YTD)
   • Has a 50% chance of going through some form of financial distress in the next two years
2. Trulieve (TCNNF): +19.4%; (+1.0% YTD)
   • Has a 36% probability of financial distress in the next few years of operation
   • Read: Trulieve Cannabis: Too Cheap To Ignore Now
3. Ayr Wellness (AYRWF): +15.8%; (+3.4% YTD)
   • Has a +62% chance of experiencing financial distress in the next few years of operation
   • Read: Ayr Wellness: Focus On The Big Picture
4. Cresco (CRLBF): +12.9%; (+11.7% YTD)
   • Has a +62% chance of experiencing financial distress in the next few years of operation
   • Read: Cresco Labs: Right On Track In Difficult Market
5. Green Thumb (GTBIF):+11.4%; (-7.0% YTD)
   • Has less than a 1% chance of experiencing financial distress in the next few years
   • Read: Green Thumb: Not Priced For Future Growth
6. Verano (VRNOF): +10.4%; (-0.3% YTD)
   • Has a 39% probability of financial distress in the next few years of operation
   • Read: Verano Steals New York License
7. Curaleaf (CURLF): +9.7%; (-5.9% YTD)
   • Has a 39% probability of financial distress in the next few years of operation
   • Read: Curaleaf: Primed For Big 2022 After Indigestion In 2021
8. Goodness Growth (GDNSF): +9.1%; (+47.4% YTD)
   • Has a +63% chance of experiencing financial distress in the next few years of operation
9. Jushi (JUSHF): +7.8%; (+39.7% YTD)
   •  Has a +62% chance of experiencing financial distress in the next few years of operation
   • Read: 
     • Jushi: Focus On Progress, Not Perfection;
     • Jushi Is Starting To Look Like One Of The Best Value Plays In The U.S. Cannabis Sector
10. Columbia Care (CCHWF): +7.2%; (+9.4% YTD)
    • Has a +74% chance of experiencing financial distress in the next few years of operation
    • Read: Columbia Care: Not Helping
11. Planet 13 (PLNHF): +6.9%; (+4.4% YTD)
    • Has a 25% chance of experiencing some form of financial distress in the next two years of operation
12. Ascend Wellness (AAWH): +3.5%; (-28.8% YTD)
    • Has a 50% chance of going through some form of financial distress in the next two years
    • Read: Ascend Wellness: New York Wildcard
13. Acreage (ACRDF/ACRHF): +3.5%; (+15.1% YTD)
    • Has a +70% chance of experiencing financial distress in the next few years of operation
    • Read: Acreage Holdings: Forgotten MSO
14. Gage Growth (GAEGF): -3.0%; (-10.6% YTD)
    • in the process of being acquired by TerrAscend
15. TerrAscend (TRSSF): -3.3%; (-9.2% YTD)
    • Has a +60% chance of experiencing financial distress in the next few years of operation
    • Read: TerrAscend: Continue Avoiding This MSO
16. 4Front Ventures (FFNTF): -4.4%; (-39.3% YTD)
    • Has a 40% probability of financial distress in the next few years of operation
    • Read: 4Front Ventures Reports Third Quarter 2021 Financial Results and Provides Business Update

The munKNEE Pure-Play American MSO Pot Stock Index advanced +2.8% during the second week of February but remains down -8.5% YTD and down -46.7% from their collective highs in 2021.

In Summary

Our Pure-Play "Seed-to-Sale" Pot Stocks Index:

• went UP +5.3% this week,
• is still DOWN -7.2% YTD
  • with the Canadian LPs segment UP +14.8% this week but DOWN -0.9% YTD while
  • the American MSOs segment went UP +2.8% this week but remains DOWN -8.5% YTD.

Is now the time to buy one or two of these deeply discounted cannabis stocks that appear to be on the rebound? Hopefully, the above information will help you in making that decision.