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Earlier this month we saw both categories (LPs and MSOs) of the munKNEE Pure-Play "Seed-to-Sale" Pot Stocks Index go UP two weeks in a row but, unfortunately, the turnaround in cannabis stocks did not hold, with the index going DOWN, -6.9%, this past week on top of a -5.5% decline the previous week.

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 207 cannabis and ancillary companies currently trading.

The 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.

Please note that each constituent in the analyses below 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 YTD 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.

The munKNEE Pure-Play Canadian LP Pot Stock Sub-Index

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

1. Cronos (CRON): +0.3% this past week; (-9.7% 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
     • Cronos Group Q3 Financial Results Show Major Improvement
2. Organigram (OGI): -2.6%; (-14.9% 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
3. Tilray (TLRY): -5.2%; (-13.8% YTD)
   • Has a +63% chance of experiencing financial distress in the next few years of operation
   • Read:
     • Tilray: Numbers Keep Getting Worse
4. Canopy Growth (CGC): -7.0%; (-18.0% 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
5. Aurora (ACB): -8.7%;  (-30.3% 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 Innovation: Mind Blowing Spending
     • Aurora Cannabis Q2 Financial Results Show No Reduction In Net Loss

The LP Sub-Index went DOWN -5.4% last week and is now DOWN -18.0% YTD and DOWN a whopping -86.6% from its high in 2021.

The munKNEE Pure-Play American MSO Pot Stock Sub-Index 

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

1. 4Front Ventures (FFNTF): +19.4% this past week; (-25.2% 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
2. Gage Growth (GAEGF): +6.4%; (-7.3% YTD)
   • in the process of being acquired by TerrAscend
3. TerrAscend (TRSSF): +4.2%; (-6.7% YTD)
   • Has a +60% chance of experiencing financial distress in the next few years of operation
   • Read: TerrAscend: Continue Avoiding This MSO
4. Ascend Wellness (AAWH): +0.2%; (-31.8% YTD)
   • Has a 50% chance of going through some form of financial distress in the next two years
   • Read: Ascend Wellness: New York Wildcard
5. Columbia Care (CCHWF): -1.9%; (+7.0% YTD)
   • Has a +74% chance of experiencing financial distress in the next few years of operation
   • Read: NEW: Columbia Care: Major Catalysts
   • Columbia Care: Not Helping
6. Planet 13 (PLNHF): -2.5%; (-7.1% YTD)
   • Has a 25% chance of experiencing some form of financial distress in the next two years of operation
7. Valens (VLNS): -5.4%; (-14.7% YTD)
   • Has a 50% chance of going through some form of financial distress in the next two years
8. Jushi (JUSHF): -5.6%; (+14.5% 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
9. Acreage (ACRDF/ACRHF): -7.3%; (-2.5% YTD)
   • Has a +70% chance of experiencing financial distress in the next few years of operation
   • Read: Acreage Holdings: Forgotten MSO
10. Ayr Wellness (AYRWF): -9.4%; (-11.1% YTD)
    • Has a +62% chance of experiencing financial distress in the next few years of operation
    • Read: Ayr Wellness: Focus On The Big Picture
11. Green Thumb (GTBIF): -10.3%; (-14.3% YTD)
    • Has less than a 1% chance of experiencing financial distress in the next few years
    • Read: Green Thumb: Not Priced For Future Growth
12. Goodness Growth (GDNSF): -10.4%; (+25.7% YTD)
    • Has a +63% chance of experiencing financial distress in the next few years of operation
13. Trulieve (TCNNF): -11.0%; (-18.8% YTD)
    • Has a 36% probability of financial distress in the next few years of operation
    • Read: Trulieve Cannabis: Too Cheap To Ignore Now
14. Verano (VRNOF): -11.3%; (+13.8% YTD)
    • Has a 39% probability of financial distress in the next few years of operation
    • Read: Verano Steals New York License
15. Cresco (CRLBF): -12.9%; (-2.8% 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
16. Curaleaf (CURLF): -17.3%; (-21.1% 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

The MSO Sub-Index went DOWN -7.2% during the last week of February and is now DOWN -10.9% YTD and DOWN -48.3% from its high in 2021.