This article is a summary of how each of the 5 categories in the cannabis sector performed over four time periods, to highlight the different category trends that are underway.

Most commentators are inclined to lump all the cannabis and cannabis-related stocks in the sector into one category and comment on the sector as a whole; but the sector is not a monolith. A more insightful approach, I felt, would be to divide the stocks into the 5 categories the sector consists of and then comment, and that is what I have been doing for the past number of years in the articles on each category that I write here, exclusively, almost every week. 

Below are the 5 categories that are tracked by my proprietary indices, the constituents in each index with their low/average/high market capitalizations and low/average/high stock price performances, and each category's average stock performance over the past week, in March, YTD and from their peaks in 2021:

1. The Pure-Play Canadian LP Pot Stock Index

   • The Index consists of the 5 largest Canadian Licensed Producers, namely, Aurora (ACB); Canopy Growth (CGC); Cronos (CRON);  Organigram  (OGI) and Tilray (TLRY) which trade for at least US$1/share on the Canadian and/or American stock exchanges and have a market cap of at least US$200M.
     • The market capitalization of the above stocks range from a low of US$465M (Organigram) to a high of US$2,860.0M (Tilray) with an average of US$1,603M.
     • The stock prices range from a low of US$1.48 (Organigram) to US$6.70 (Canopy) with an average of US$4.31/share as of today.
   •  The Index was DOWN -13.5% this past week, UP +13.1% in March, is now DOWN -19.7% YTD and DOWN -86.2% from its peak in February 2021. 

2. The Pure-Play American MSO Pot Stock Index

   • The Index consists of the 13 largest American Multi-State Operators, namely, Acreage (ACRDF/ACRHF); Ascend Wellness (AAWH); Ayr Wellness  (AYRWF):  Columbia Care (CCHWF); Cresco (CRLBF); Curaleaf (CURLF); Goodness Growth  (GDNSF);  Green Thumb (GTBIF); Jushi (JUSHF); Planet 13 (PLNHF);  TerrAscend  (TRSSF);  Trulieve (TCNNF) and Verano (VRNOF) which trade for at least US$1/share on the Canadian and/or American stock exchanges and have a market cap of at least US$200M.
     • The market capitalization of the above stocks range from a low of US$251M (Goodness Growth) to a high of US$4,820M (Curaleaf) with an average of US$1,630M.
     • The stock prices range from a low of US$1.96 (Goodness Growth) to US$19.85 (Trulieve) with an average of US$7.26/share as of today.
   • The Index was DOWN -5.0% this past week, DOWN -3.2% in March, is now DOWN -20.0% YTD and DOWN -63.1% from its peak in February 2021.

3. The Ancillary Pot Stock Index

   • The Index consists of the 7 largest companies providing goods and services to the cannabis sector, namely, AFC Gamma (AFCG); Forian (FORA); GrowGeneration (GRWG); Hydrofarm (HYFM); Innovative Industrial Properties (IIPR); Scotts Miracle-Gro Company  (SMG) and Turning Point Brands (TPB) which trade for at least US$1/share on the Canadian and/or American stock exchanges and have a market cap of at least US$200M.
     • The market capitalization of the above stocks range from a low of US$167.2M (Forian) to a high of US$6,490M (Scotts Miracle-Gro) with an average of US$1,993.1M.
     • The stock prices range from a low of US$5.13 (Forian) to US$189.02 (Innovative) with an average of US$54.51/share as of today.
   •  The Index was DOWN -4.3% this past week, was DOWN -4.9% in March, is now DOWN -28.7% YTD and DOWN -52.3% from its peak in 2021. 

4. The Conservative Pot Stocks Index

   • The Index consists of 6 tobacco, beer and liquor companies that have invested heavily in the cannabis industry, namely, Altria Group (MO); Anheuser-Busch  (BUD); British American Tobacco (BTI); Constellation Brands (STZ); Imperial Brands  (IMBBY) and Molson Coors Brewing Company (TAP).
     • The market capitalization of the above stocks range from a low of US$11.2B (Molson Coors) to a high of US$102.1B (Anheuser-Busch) with an average of US$62.7B.
     • The stock prices range from a low of US$22.19 (Imperial Brands) to US$244.46 (Constellation) with an average of US$79.00/share as of today.
   • The Index was UP+3.1 this past week, was UP +0.9% in March, is UP +2.0% YTD but is still DOWN -5.6% from its peak in 2021.

5. The Pure-Play Psychedelic Compounds-Based Stocks Index 

   • The Index consists of 6 psychedelic and marijuana (THC) drug companies in the clinical stages of research and development of treatments for a wide variety of mental illnesses, namely, Allied (ALID); Cybin (CYBN);  Field Trip (FTRP); Numinus (NUMIF); Seelos (SEEL) and Zynerba (ZYNE) which trade on the Canadian and/or American stock exchanges and have market caps of at least US$80M.
     • The market capitalization of the above stocks range from a low of US$78M (Zynerba) to a high of US$122.8M (Cybin) with an average of US$91.3M.
     • The stock prices range from a low of US$0.41 (Numinus) to US$1.85 (Zynerba) with an average of US$1.05/share as of today.
   • The Index went DOWN -3.4% this past week, DOWN -19% in March, is now DOWN -39.4% YTD and DOWN -77.8% from its peak in 2021. 
   • 4 other companies with market caps in excess of US$400M are followed but not included in the Index due to their size, namely, Atai (ATAI); Compass Pathways (CMPS); GH Resources (GHRS) and Mind Medicine (MNMD).
     • The market capitalization of the above stocks range from a low of US$408M (Mind Medicine) to a high of US$988M (GH Resources) with an average of US$679.5M.
     • The stock prices range from a low of US$0.97 (Mind Medicine) to US$19.00 (GH Resources) with an average of US$9.36/share as of today.
   •  The sub-Index went DOWN -0.2% this past week, went UP +2.7% in March; is now DOWN -31.3% YTD and DOWN -63.1% from its peak in 2021. 

In Summary

1. The Pure-Play Canadian LP Pot Stock Index
   • was DOWN -13.5% this past week, UP +13.1% in March; is now DOWN -19.7% YTD and DOWN -86.2% from its peak in February 2021.
2. The Pure-Play American MSO Pot Stock Index
   • was DOWN -5.0% this past week, DOWN -3.2% in March; is now DOWN -20.0% YTD and DOWN -63.1% from its peak in February 2021.
3. The Ancillary Pot Stock Index
   •  was DOWN -4.3% this past week, DOWN -4.9% in March; is now DOWN -28.7% YTD and DOWN -52.3% from its peak in 2021.
4. The Pure-Play Psychedelic Compounds-Based Stocks Index 
   • was DOWN -3.4% this past week, DOWN -19% in March; is now DOWN -39.4% YTD and DOWN -77.8% from its peak in 2021.
5. The Conservative Pot Stocks Index
   • was UP+3.1 this past week, UP +0.9% in March; is now UP +2.0% YTD and but is still DOWN -5.6% from its peak in 2021.

Having the cannabis sector analyzed in such a fashion highlights the disparity between the 5 categories and, I hope, provides you with the information necessary to decide which, if any, category to invest in. In addition, please visit my TalkMarkets authorpage (see here) for frequent articles on the performances of each of the constituents in the above 5 indexes, to help you determine which individual stocks within each category, if any, warrant your consideration.