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:
  1. Aurora: DOWN -10.3% and is now DOWN -17.1% MTD and DOWN -28.4% YTD
  2. 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:
  1. Harvest Health: UP +11.1% and is now UP +12.2% MTD and UP 53.2% YTD
  2. Trulieve: UP +10.3% and is now UP +6.8% MTD but still DOWN -8.4% YTD
  3. Ayr Wellness: UP +9.6% and is now UP +5.0% MTD and UP +7.2% YTD
  4. Curaleaf: UP +7.2% and is now DOWN -7.3% MTD and DOWN -6.3% YTD
  5. Green Thumb: UP +6.1% and is now DOWN -7.0% MTD and UP +14.7% YTD
  6. 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.