Pure-Play MSO Pot Stock Index Was Flat Last Week

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The American Pure-Play Multi-State Operator (MSO) Pot Stock Index was unchanged last week and, while down 7.6% so far in April, is still +28.7% YTD. Here are the details by constituent and in comparison to the 4 other cannabis and cannabis-related stock categories munKNEE.com tracks.

Given that there was marginal price movement in the index last week (cbdMD @ +13.6%, Jushi  @ +11.0%, Gage Growth @ -6.9% and Hemp Fusion @ -26.2% were the exception) below is a look at how the constituents have performed year-to-date, in descending order:

MSO Pure-Play Pot Stock Index Performance

Of the 22 stocks in the Index, YTD 13 constituents have gone up by 10% or more while 2 have declined by 10% or more, as follows, in descending order:

Major Advancers

  1. Harvest Health (HRVSF): +74.1%
  2. Acreage (ACRDF/ACRHF): +53.0%
  3. Vireo Health (VREOF): +36.5%
  4. cbdMD (YCBD): +30.5%
  5. Lowell Farms (LOWLF): +23.7%
  6. Charlotte's Web (CWBHF): +21.5%
  7. Trulieve (TCNNF): +20.4%
  8. Cresco (CRLBF): +18.6%
  9. Planet 13 (PLNHF): +18.6%
  10. Ayr Wellness (AYRWF): +17.5%
  11. Green Thumb (GTBIF): +14.6%
  12. Harborside (HBORF): +10.1%
  13. Curaleaf (CURLF): +10.0%

Major Decliners

  1. C21 Investments (CXXIF): -24.8%
  2. IM Cannabis (IMCNF): -24.6%

The remaining 7 constituents changed in price by less than 10% from the end of December 2020.

Measuring Volatility

Beta measures the volatility (the up and down movement) of a stock relative to the overall stock market and serves as a measure of the volatility of a stock compared to others in the same sector. What you see below are the 7 most stable stocks in the munKNEE Pure-Play MSO Pot Stock Sub-Index and the 5 most volatile:

The Most Stable

  1. Ayr Wellness: 1.23x (i.e. historically its stock has moved only 23% more than the overall stock market); 2) cbdMD: 1.40x; 3) Medicine Man: 1.46x; 4) TerrAscend: 1.51x;  5) Columbia: 1.81x; 6)  Curaleaf: 1.86x and 7) Trulieve: 1.96x

The Most Volatile

  1. Jushi: 8.34x (historically 8.34 times more volatile than the overall stock market); 2) Harvest Health: 4.02x; 3) C21 Investments: 3.99x; 4) Planet 13: 3.18x; 5) Harborside: 2.96x

The remaining 10 constituents in the munKNEE Pure-Play MSO Pot Stock Index have volatility that range, historically, between 2.16x and 2.66x that of the overall stock market.

Cannabis & Cannabis-related Index Performance Comparisons

munKNEE.com tracks the performance of five (5) cannabis categories and below is a comparison of how each index has performed YTD, and so far in April in brackets, which we think provides the clearest overview of the cannabis stock sector that is available anywhere:

  1. the Canadian Pure-Play Licensed Producers Pot Stock Index (8 constituents): +36.7% YTD (-17.0% so far in April); Beta: 2.11 (See index details here.)
  2. the American Pure-Play Multi-State Operators Pot Stock Index (22 constituents): +28.7% YTD; (-7.6% so far in April); Beta: 2.69
  3. the Ancillary Pot Stocks Index (16 constituents): +12.3% YTD; (-4.4% so far in April); Beta: 2.2
  4. the Conservative Pot Stocks Index (8 constituents): +6.3% YTD; (+3.0% so far in April); Beta: 0.96 and
  5. the new Cannabis-Centric Bio-Pharma Companies Index (13 constituents): -1.1% YTD; (-14.1% so far in April); Beta: 2.9. (See details of the index here.)

The above 5 non-tradable indices replicate the performance of a portfolio investing an equal amount of money in each company in the various cannabis categories, with daily rebalancing to maintain an equal weight, to serve as benchmarks to measure the performance of individual stocks compared to their respective index. A sum total of 67 cannabis and cannabis-related companies are tracked out of an universe of approximately 200 (i.e. 33.5%).

(For more information on the reason(s) behind the changes outlined below you are urged to click on the stock symbols provided by TalkMarkets, where additional information is provided. All currency amounts are in U.S. dollars. Go here to convert to another currency.)

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