The performance of cannabis, psychedelic and plant-based food stocks in 2022 were just horrible and, after such massive declines, the market could well offer high returns to investors in 2023 and beyond. That being said, however, just because a stock or a sector declines doesn't mean that it will rally, but the market is very oversold and offers great valuations for good companies. As such, I am optimistic that the market will perform better in 2023 and think the sell-off could be a great opportunity to invest in some of those stocks. Such being the case, munKNEE.com has created a basket of 14 stocks aptly named the Rags-to-Riches Portfolio for 2023.

As one of the readers of my weekly reports you should be well informed regarding the performance of the following munKNEE indices in 2022:

• the American Cannabis MSOs Index (-73% in 2022);
• the Canadian Cannabis LPs Index (-60% in 2022);
• the Psychedelic Stocks Index (-54% in 2022) supplemented by the 6 nano-stocks operating ketamine-assisted therapy clinics (-79%) and
•  the Plant-Based Food Stocks Index (-82% in 2022).

I have reduced the 28 equities being tracked in the indices above to the 14 stocks with market capitalizations of at least $400M, and trading for at least $1/share, and included them as the constituents in the Rags-to-Riches Portfolio. In this introduction I include their stock prices as of December 31st, 2022, and their performances in 2022, as follows, in alphabetical order:

• American Cannabis MSOs: (Read: The 12 Largest American Cannabis MSOs Collapsed 73% In 2022)
  1. Cresco (CRLBF): Y/E 2022 Mkt. Cap.: $1.010M; Y/E Stock Price: $1.75; 2022 Performance: -73.8%
  2. Curaleaf (CURLF): Y/E 2022 Mkt. Cap.:  $3,280M; Y/E Stock Price: $3.91; 2022 Performance: -73.8%
  3. Green Thumb (GTBIF): Y/E 2022 Mkt. Cap.: $2,290M; Y/E Stock Price: $8.43; 2022 Performance: -62.0%
  4. TerrAscend (TRSSF): Y/E 2022 Mkt. Cap.: $540M; Y/E Stock Price: $1.10 ; 2022 Performance: -82.0%
  5. Trulieve (TCNNF): Y/E 2022 Mkt. Cap.: $1,770M; Y/E Stock Price: $7.56; 2022 Performance: -70.9%
  6. Verano (VRNOF): Y/E 2022 Mkt. Cap.: $1,190M; Y/E Stock Price: $3.08 ; 2022 Performance: -75.5%
     • Sub-total: Ave. Y/E Mkt. Cap: $1.680M ; Ave. Y/E Stock Price: $4.31; Ave. 2022 Performance: -66.7%
• Canadian Cannabis LPs  (Read: The 5 Largest Canadian Cannabis LP Stocks Collapsed 66% In 2022)
  1. Canopy Growth (CGC): Y/E 2022 Mkt. Cap.: $1,380M; Y/E Stock Price: $2.27; 2022 Performance: -74.0%
  2. Cronos (CRON): Y/E 2022 Mkt. Cap: $1,060M; Y/E Stock Price: $2.52; 2022 Performance: -35.7% 
  3. Tilray (TLRY): Y/E 2022 Mkt. Cap.: $2,070M; Y/E Stock Price: $2.67; 2022 Performance: -62.0%
     • Sub-total: Ave. Y/E Mkt. Cap: $1,503M; Ave. Y/E Stock Price: $2.49; Ave. 2022 Performance: -62.0%
• Psychedelic Drug Stocks (Read: 6 Largest Psychedelic Drug Stocks Were -20% In December)
  1. Atai (ATAI): Y/E 2022 Mkt. Cap.: $500M; Y/E Stock Price: $2.58; 2022 Performance: -66.2%
  2. Compass Pathways (CMPS): Y/E 2022 Mkt. Cap.: $402M; Y/E Stock Price: $7.81; 2022 Performance: -64.7%
  3. GH Research (GHRS): Y/E 2022 Mkt. Cap.: $611M; Y/E Stock Price: $9.54; 2022 Performance: -59.1%  
     • Sub-total: Ave. Mkt. Cap: $504M; Ave. Y/E Stock Price $6.64; Ave. 2022 Performance: -62.0%
• Plant-Based Food Stocks (Read: Largest Plant-Based Food Stocks Index Collapsed 83% In 2022)
  1. Beyond Meat (BYND): Y/E 2022 Mkt. Cap.: $805M; Y/E Stock Price: $12.29; 2022 Performance: -80.8%
  2. Oatly Group (OTLY): Y/E 2022 Mkt. Cap.: $1,210M; Y/E Stock Price: $1.74; 2022 Performance: -78.1%
     • Sub-total: Ave. Mkt. Cap: $1,075M; Ave. Y/E Stock Price $7.02; Ave. 2022 Performance: -80.8%

Grand Total:

• Ave. Y/E Mkt. Cap: $1,294M;
• Ave. Y/E Stock Price: $12.79;
• Ave. 2022 Stock Performance: -61.0%

Beginning next week, and weekly thereafter, I will report on the performance of the Portfolio, and that of each of the 14 constituents, with any pertinent information as to the reasons for any major moves one way or the other.

More By This Author:

The Highest ESG Score ETFs Index Outperformed The S&P 500 In 2022
The 5 Cannabis Category Indices Ranged From +0.39% To -72.2% In 2022
6 Largest Psychedelic Drug Stocks Were -20% In December