Only 23 of the 225 cannabis and ancillary companies trading on the various North American stock exchanges meet the criteria* for inclusion in the munKNEE  Pure-Play "Seed-to-Sale" Pot Stocks Index. The Index consists of two sub-categories: the Canadian Pure-Play Licensed Producers (LPs) Pot Stock Index and the American Pure-Play Multi-State Operators (MSOs) Pot Stock Index. Which outperformed in September: LPs or MSOs? This article has the answers.

*The criteria for inclusion in the munKNEE pot stock indices are vertically integrated (seed-to-sale) companies that derive 100% of their revenue from the sector, have a market capitalization in excess of US$300K, and trade for at least US$1/share. Only 6 Canadian LP stocks and 17 American MSO stocks meet those criteria.

The munKNEE Canadian Pure-Play Licensed Producers Pot Stock Index

• consists of the following constituents: Aurora (ACB), Canopy (CGC), Cronos (CRON), Hexo  (HEXO),  Organigram  (OGI), and Tilray (TLRY);
• was DOWN -15.1 in September and is now DOWN -21.2% YTD.
• All 6 of the constituents in the sub-category declined in price as follows, in descending order:
  1. Aurora: DOWN -3.6% and is now DOWN -16.7% YTD
  2. Organigram: DOWN -12.2% but is still UP +72.9% YTD
  3. Cronos: DOWN -12.7% and is now DOWN -18.4% YTD
  4. Tilray: DOWN -15.9% but is still UP +36.7% YTD
  5. Canopy: DOWN -19.4% and is now DOWN -43.8% YTD
  6. Hexo: DOWN -24.3% and now DOWN -50.0% YTD

The munKNEE American Pure-Play Multi-State Operators Pot Stock Index

• consists of the following constituents: 4 Front (FFNTF), Acreage (ACRDF/ACRHF), Ascend Wellness  (AAWH),  Ayr (AYRWF), Charlotte's Web (CWBHF), Columbia (CCHWF), Cresco (CRLBF), Curaleaf (CURLF), Gage  (GAGE), Goodness Growth (GDNSF), Green Thumb (GTBIF), Harvest Health (HRVSF), Jushi  (JUSHF), Planet 13 (PLNHF), TerrAscend (TRSSF), Trulieve (TRSSF) and Verano (VRNOF)
• was DOWN -2.7% in September and is now DOWN -5.6% YTD.
• 11 of the 17 constituent stocks in the sub-category changed in price last week by more than 5%.
  • 3 were UP by more than 5% in September: 
    1. Goodness Growth: UP +12.7% and is now UP +8.1% YTD
    2. Ayr Wellness: UP +8.2% and is now UP +10.5% YTD
    3. Harvest Health: UP +5.8% and is now UP +44.4% YTD
  • 8 were DOWN by more than 5% in September, as follows, in descending order:
    1.  Planet 13: DOWN -5.3% and is now DOWN -14.5% YTD
    2. 4 Front Ventures: DOWN -5.4% and is now only UP +16.5% YTD
    3. Cresco: DOWN -7.0% and is now DOWN -6.0% YTD
    4. Green Thumb: DOWN -8.1% but is still UP +13.3% YTD
    5. Jushi: DOWN -9.8% and is now DOWN -27.5% YTD
    6. Ascend Wellness: DOWN -10.0% and is now DOWN -0.5% YTD
    7. Acreage Holdings: DOWN -13.9% and is now DOWN -17.7% YTD
    8. Charlotte's Web: DOWN -21.1% and is now DOWN -41.2% YTD

Summary:

In total, the munKNEE Pure-Play "Seed-to-Sale" Pot Stocks Index was DOWN -7.8% in September and is now DOWN -9.9% YTD while

• the American Pure-Play Multi-State Operators Pot Stock Index
  • out-performed the Canadian Pure-Play Licensed Producers Pot Stock Index in September only declining by -2.7% versus -15.1% for the LP sub-index and
  • is out-performing the LP sub-index YTD having declined by only -5.6% versus -21.2% for the LP index.

The above non-tradable indices replicate the performance of a portfolio investing an equal amount of money in each company in the cannabis categories, with daily rebalancing to maintain equal weight.