At the end of August, the U.S. Department of Health & Human Services recommended that marijuana's drug status be changed to a lower-risk Schedule III substance. If implemented it would allow major U.S. stock exchanges to list MSOs on their exchanges, substantially ease banking requirements for MSO companies and, potentially, allowing Canadian cannabis LPs to sell their products in the United States.

Investors were initially enthusiastic, with the industry's average stock price going up 2.7% by the end of September only to have declined 11.2% so far in October and now 8.8% below its price at the end of August based on the average of the AdvisorShares Pure US Cannabis ETF (MSOS) and the Global X Cannabis ETF (POTX).

Below are the performances of the 5 stocks in munKNEE's Canadian Cannabis LPs Index and in the 7 stocks in munKNEE's American Cannabis MSOs Index for this week, in descending order, and since the end of August when all this misplaced hope began.

Canadian Cannabis LPs Index

1. Canopy Growth (CGC): down 1.4% this week; up 21.1% since the end of August
   • Price-to-Sales Ratio (PSR): 1.7 (excellent)
2. Tilray Brands (TLRY): down 2.4% this week; down 32.1% since the end of August
   • Price-to-Sales Ratio (PSR): 1.8 (excellent)
3. Cronos Group (CRON): down 5.5% this week; down 8.3% since the end of August
   • *Price-to-Sales Ratio (PSR): 8.7 (high)
4. Organigram Holdings (OGI): down 6.6% this week; down 31.1% since the end of August
   • Price-to-Sales Ratio (PSR): 0.8 (excellent)
5. Aurora Cannabis (ACB): down 10.5% this week; up 6.3% since the end of August
   • Price-to-Sales Ratio (PSR): 1.2 (excellent)

Average: down 4.7% this week; down 6.9% last week; down 19.2% since the end of August

American Cannabis MSOs Index

1. Verano Holdings (VRNOF): up 4.7% this week; up 21.0% since the end of August
   • Price-to-Sales Ratio (PSR): 1.6 (very good)
2. TerrAscend Corp. (TSNDF): up 3.3% this week; down 7.3% since the end of August
   • Price-to-Sales Ratio (PSR): 1.7 (very good)
3. The Cannabist Company (CBSTF): No Change this week; up 5.4% since the end of August
   • Price-to-Sales Ratio (PSR): 0.6 (excellent)
4. Cresco Labs (CRLBF): down 0.6% this week; up 4.4% since the end of August
   • Price-to-Sales Ratio (PSR): 0.75 (excellent)
5. Trulieve Cannabis (TCNNF): down 2.7% this week; down 11.6% since the end of August
   • Price-to-Sales Ratio (PSR): 0.8 (excellent)
6. Green Thumb (GTBIF): down 5.1% this week; up 2.0% since the end of August
   • Price-to-Sales Ratio (PSR): 2.3 (good)
7. Curaleaf Holdings (CURLF): down 5.2% this week; down 5.5% since the end of August
   • Price-to-Sales Ratio (PSR): 2.2 (good)

Average: down 2.2% this week; down 12.2% last week; down 9.5% since the end of August

*The price-to-sales ratio (PSR) describes how much someone must pay to buy one share of a company relative to how much that share generates in revenue for the company. and, as such, determines whether its stock is cheap or overpriced in comparison to its peers. While the ideal ratio depends on the company and industry, the ratio is typically good when the value falls between one (1)  and two (2) and a ratio of less than one (1) is even better.

If you are interested in the cannabis category, consider:

• the AdvisorShares Pure US Cannabis ETF (MSOS) which was down 0.3% this week and/or
• the Global X Cannabis ETF (POTX), which consists of the above 5 highlighted Canadian stocks plus another 12 cannabis or cannabis-related (i.e. auxiliary) stocks, was down 5.4% this week.

More By This Author:

Interested In AI? These 7 Mega-Caps Dominate All Facets Of Its Development
Get Ready: Wearable AI Is Coming In November
These Major AI Quantum Computing Stocks Are Up 71%, On Average, YTD