"Seed-To-Sale" Pot Stocks Index Faltered This Past Week After Two-Week Resurgence
Last week's article (see here) closed with the words "Is now the time to buy one or two of these deeply discounted cannabis stocks that appear to be on the rebound?" given that both categories (LPs and MSOs) of the munKNEE Pure-Play "Seed-to-Sale" Pot Stocks Index had gone UP two weeks in a row. Unfortunately, the turnaround in cannabis stocks did not hold, with the index dropping -5.5% this past week.
The munKNEE "Seed-to-Sale" Pot Stocks Index consists of:
- the 21 non-ancillary (i.e. pure-play) vertically integrated cannabis companies whose stocks trade for at least US$1/share (4Front Ventures is the only exception), have a market cap of at least US$200M, and trade on one or more of the Canadian and/or American stock exchanges. It includes
- 5 Canadian Licensed Producers (LPs) and
- 16 American Multi-State Operators (MSOs) which, in total,
- represent 10% of the total universe of 207 cannabis and ancillary companies currently trading.
The non-tradable Index gives each constituent the same importance to provide a comparison of the performance of each with the others and the stated sector as a whole.
Please note that each constituent in the analyses below has 5 areas of additional information that are imperative for any individual considering investing in this sector:
- The company name is hyperlinked to its website to provide you with a description of the company and an analysis of its stock.
- The trading symbol is hyperlinked to additional financial data and commentary on the company (where available).
- The "financial distress" percentage is sourced from macroaxis.com (visit the site and type in the stock symbol to obtain detailed financial data on the health of the company).
- The percentage change is hyperlinked to a chart of the company's stock performance.
- The articles hyperlinked are sourced from Stone Fox Capital and/or Technical420 and provide analyses/commentaries on most of the constituents below to help a potential investor with insights into the burgeoning, yet volatile, cannabis sector.
The munKNEE Pure-Play Canadian LP Pot Stock Index
Below is how the Canadian Licensed Producer constituents performed during the third week of February, in descending order, with their month-to-date performances in brackets:
- Aurora (ACB): -8.0% this past week; (+5.6% MTD)
- Has a 49% chance of going through some form of financial distress in the next two years
- Read:
- Tilray (TLRY): -10.3%; (+16.6% MTD)
- Has a +63% chance of experiencing financial distress in the next few years of operation
- Read:
- Organigram (OGI): -11.0%; (+9.3% MTD)
- Has less than a 1% chance of experiencing financial distress in the next few years
- Read:
- Cronos (CRON): -12.6%; (+3.5% MTD)
- Has a 50% chance of going through some form of financial distress in the next two years
- Read:
- Canopy Growth (CGC): -16.5%; (+5.9% MTD)
- Has a +61% chance of experiencing financial distress in the next few years of operation
- Read:
The munKNEE Pure-Play Canadian LP Pot Stock Index went DOWN -12.4% last week, while UP +8.4% MTD is now DOWN -13.3% YTD and DOWN a whopping -85.9% from their collective highs in 2021.
The munKNEE Pure-Play American MSO Pot Stock Index
Below is how the American Multi-State Operator constituents performed during the third week of February, in descending order, with their month-to-date performances in brackets:
- 4Front Ventures (FFNTF): +3.1% this past week; (+4.7% MTD)
- Has a 40% probability of financial distress in the next few years of operation
- Read: 4Front Ventures Reports Third Quarter 2021 Financial Results and Provides Business Update
- Green Thumb (GTBIF):+2.8%; (+24.2% MTD)
- Has less than a 1% chance of experiencing financial distress in the next few years
- Read: Green Thumb: Not Priced For Future Growth
- Curaleaf (CURLF): +1.4%; (+21.8% MTD)
- Has a 39% probability of financial distress in the next few years of operation
- Read: Curaleaf: Primed For Big 2022 After Indigestion In 2021
- Cresco (CRLBF): -0.1%; (+27.0% MTD)
- Has a +62% chance of experiencing financial distress in the next few years of operation
- Read: Cresco Labs: Right On Track In Difficult Market
- Columbia Care (CCHWF): -0.3%; (+17.7% MTD)
- Has a +74% chance of experiencing financial distress in the next few years of operation
- Read: Columbia Care: Not Helping
- TerrAscend (TRSSF): -2.2%; (+8.3% MTD)
- Has a +60% chance of experiencing financial distress in the next few years of operation
- Read: TerrAscend: Continue Avoiding This MSO
- Gage Growth (GAEGF): -2.5%; (+5.4% MTD)
- in the process of being acquired by TerrAscend
- Verano (VRNOF): -2.6%; (+18.3% MTD)
- Has a 39% probability of financial distress in the next few years of operation
- Read: Verano Steals New York License
- Ascend Wellness (AAWH): -4.5%; (+1.4% MTD)
- Has a 50% chance of going through some form of financial distress in the next two years
- Read: Ascend Wellness: New York Wildcard
- Goodness Growth (GDNSF): -4.8%; (+45.5% MTD)
- Has a +63% chance of experiencing financial distress in the next few years of operation
- Ayr Wellness (AYRWF): -5.0%; (+13.7% MTD)
- Has a +62% chance of experiencing financial distress in the next few years of operation
- Read: Ayr Wellness: Focus On The Big Picture
- Acreage (ACRDF/ACRHF): -8.5%; (+14.1% MTD)
- Has a +70% chance of experiencing financial distress in the next few years of operation
- Read: Acreage Holdings: Forgotten MSO
- Planet 13 (PLNHF): -8.7%; (+7.6% MTD)
- Has a 25% chance of experiencing some form of financial distress in the next two years of operation
- Trulieve (TCNNF): -9.7%; (+27.3% MTD)
- Has a 36% probability of financial distress in the next few years of operation
- Read: Trulieve Cannabis: Too Cheap To Ignore Now
- Jushi (JUSHF): -12.3%; (+17.6% MTD)
- Has a +62% chance of experiencing financial distress in the next few years of operation
- Read:
- Valens (VLNS): -15.3%; (+27.0% MTD)
- Has a 50% chance of going through some form of financial distress in the next two years
The munKNEE Pure-Play American MSO Pot Stock Index went DOWN -4.1% during the third week of February, while UP +24.9% MTD is now DOWN -4.4% YTD and DOWN -44.3% from their collective highs in 2021.
In Summary
The munKNEE Pure-Play "Seed-to-Sale" Pot Stocks Index:
- went DOWN -5.5% this past week but
- is still UP +17.8% MTD albeit
- now DOWN -6.0% from their collective highs in 2021.
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