MSO, LP Cannabis Stocks Diverged Further Last Week
Only 23 of the 225 cannabis and ancillary companies trading on the various North American stock exchanges meet the criteria* for inclusion in the munKNEE Pure-Play "Seed-to-Sale" Pot Stocks Index. The Index consists of two sub-categories: the Canadian Pure-Play Licensed Producers (LPs) Pot Stock Index and the American Pure-Play Multi-State Operators (MSOs) Pot Stock Index. Which outperformed last week: LPs or MSOs? This article has the answers.
*The criteria for inclusion in the munKNEE pot stock indices are vertically integrated (seed-to-sale) companies that derive 100% of their revenue from the sector, have a market capitalization in excess of US$300K, and trade for at least US$1/share. Only 6 Canadian LP stocks and 17 American MSO stocks meet those criteria.
The munKNEE Canadian Pure-Play Licensed Producers Pot Stock Index
- consists of the following constituents: Canopy (CGC), Tilray (TLRY), Cronos (CRON), Aurora (ACB), Hexo (HEXO) and Organigram (OGI) and
- was DOWN -5.4% last week and is now DOWN -15.7% MTD and DOWN -21.8% YTD.
- All but 1 of the 6 constituent stocks in the sub-category declined in price (Organigram advanced by just 0.8%) last week with 2 doing so by 5% or more, as follows:
- Aurora: DOWN -10.3% and is now DOWN -17.1% MTD and DOWN -28.4% YTD
- Canopy: DOWN -5.4% and is now DOWN -19.1% MTD and DOWN -43.5% YTD
The munKNEE American Pure-Play Multi-State Operators Pot Stock Index
- consists of the following constituents: Curaleaf (CURLF), Green Thumb (GTBIF), Trulieve (TRSSF), Verano (VRNOF), Cresco (CRLBF), TerrAscend (TRSSF), Columbia (CCHWF), Harvest Health (HRVSF), Ascend Wellness (AAWH), Planet 13 (PLNHF), Ayr (AYRWF), Jushi (JUSHF), 4 Front (FFNTF), Charlotte's Web (CWBHF), Gage (GAGE), Goodness Growth (GDNSF) and Acreage (ACRDF/ACRHF) and
- was UP +5.5% last week and is now DOWN just -1.0% MTD and DOWN -3.8% YTD.
- 6 of the 17 constituent stocks in the sub-category changed in price last week by more than 5% as follows, in decending order:
- Harvest Health: UP +11.1% and is now UP +12.2% MTD and UP 53.2% YTD
- Trulieve: UP +10.3% and is now UP +6.8% MTD but still DOWN -8.4% YTD
- Ayr Wellness: UP +9.6% and is now UP +5.0% MTD and UP +7.2% YTD
- Curaleaf: UP +7.2% and is now DOWN -7.3% MTD and DOWN -6.3% YTD
- Green Thumb: UP +6.1% and is now DOWN -7.0% MTD and UP +14.7% YTD
- Cresco: UP +6.0% and is now DOWN -7.3% MTD and DOWN -6.3% YTD
Summary:
In total, the Pure-Play "Seed-to-Sale" Pot Stocks Index was UP 3.0% last week and is now only DOWN -3.3% MTD and DOWN -8.7% YTD while
- the American Pure-Play Multi-State Operators Pot Stock Index
- has out-performed the Canadian Pure-Play Licensed Producers Pot Stock Index sub-index last week, at +5.5% versus -5.4% for the LP sub-index,
- is currently out-performing the LP sub-index MTD, at-1.0% versus -15.7% MTD for the LP sub-index and out-performing the LP sub-index YTD, at -3.8% versus -21.8%.
The above non-tradable indices replicate the performance of a portfolio investing an equal amount of money in each company in the cannabis categories, with daily rebalancing to maintain equal weight.
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