October Recap: American Cannabis MSOs Jump Record 22%!


As TalkMarkets contributor, Alan Brochstein, CFA and Editor of New Cannabis Ventures, said in a recent mailing to subscribers, "The poor performance of so many companies in the industry financially and operationally weighs on the few companies that are legitimate...Be careful with companies that have high levels of debt and negative cash flow. Look for companies that have strong management and avoid those that don't. Don't fall for the tricks of paid stock promotion!" I second that. A perfect example of that is the performance of Green Thumb Holdings, Inc. (GTBIF). According to in-depth analysis by microacis.com, Green Thumb is the ONLY cannabis company that has a positive operational cash flow and is the company with the lowest chance (14%) of encountering financial stress - even going bankrupt - in the next 2 years compared to its peers according to its Altman Z-Score (see my previous articles on the subject here and here). 

Below are the constituent performances, in descending order (except Green Thumb which is presented separately), as of October 28th*. The latest in analysis and commentary on each of the companies is available here.

The Performance Of The Constituent In the Best Financial Health

  1. Green Thumb (GTBIF): UP 25.0% in October*
    • has a positive net operating cash flow (Source)
    • has only a 14% chance of encountering financial distress within the next 2 years (Source)

2 Constituents Were UP +50%

  1. Ayr (AYRWF): UP 52.3% in October*
    • has a negative net operating cash flow
    • has a 73% chance of encountering financial distress within the next 2 years
    • rebounded on positive general market sentiment to match its price at the close of business at the end of May, 2022
  2. Acreage (ACRDF): UP 50.0% in October*
    • has a negative net operating cash flow
    • has a 73% chance of encountering financial distress within the next 2 years
    • advanced dramatically as a result of Canopy Growth's announcement that it would be moving to form a U.S.-based holding company, which would include Acreage Holdings, to accelerate its entry into the fast-growing U.S. market 

2 Constituents Were UP +20%

  1. Trulieve (TCNNF): UP 27.1% in October*
    • has a negative net operating cash flow
    • has a 74% chance of encountering financial distress within the next 2 years
  2. Jushi (JUSHF): UP 24.4% in October*
    • has a negative net operating cash flow
    • has a 77% chance of encountering financial distress within the next 2 years

4 Constituents Were UP +15%

  1. TerrAscend (TRSSF): UP 19.5% in October* 
    • has a negative net operating cash flow
    • has a 74% chance of encountering financial distress within the next 2 years
  2. Columbia Care (CCHWF): UP 19.4 % in October*
    • has a negative net operating cash flow
    • has a 73% chance of encountering financial distress within the next 2 years
  3. Cresco (CRLBF): UP 17.8 % in October*
    • has a negative net operating cash flow
    • has a 74% chance of encountering financial distress within the next 2 years
  4. Verano (VRNOF): UP 12.3% in October*
    • has a negative net operating cash flow
    • has a 70% chance of encountering financial distress within the next 2 years

3 Constituents Were UP +5%

  1. Ascend (AAWH): UP 9.3% in October*
    • has a negative net operating cash flow
    • has a 77% chance of encountering financial distress within the next 2 years
  2. Planet 13 (PLNHF): UP 6.3% in October* 
    • has a negative net operating cash flow
    • has a 36% chance of encountering financial distress within the next 2 years
  3. Curaleaf (CURLF): UP 5.9% in October* 
    • has a negative net operating cash flow
    • has a 73% chance of encountering financial distress within the next 2 years

Summary

  • Sub-Total (excluding Green Thumb): UP 21.3% in October*
  • Green Thumb: UP 25.0% in October*
  • Grand Total (i.e. including Green Thumb): UP 22.1% in October*

More By This Author:

October Recap: Canadian Cannabis LPs Index Jumped 16%
October Recap: Metaverse Stocks Index UP 3%; Meta Platforms Down 27%
October Recap: Major Plant-Based Food Stocks Only Declined 1.2%

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