Cannabis, psychedelic and plant-based food stocks performed terribly in 2022 with the smallest capitalized among them going down dramatically so one could be excused for thinking that they have probably reached bottom and that such a massive decline could well offer major returns - dare I say "multi-bagger" returns - in 2023.

I realize that just because stocks have suffered major declines it doesn't mean that they will necessarily rally. The cannabis sector, for example, declined 64% from its peak in 2021, and then declined another 70%, in total, in 2022 (source). That being said, however, the market is very oversold and, as such, I am optimistic that the market will perform better in 2023.

I think now might be a great opportunity to invest in some of the stocks below (they are not recommendations so do your own research) even though I acknowledge that we could potentially see lower prices before they begin to rise in earnest and that any bear market impacting stocks overall could further rein in enthusiasm for such stocks.

The "Rags-to-Riches" Portfolio (see here) has 14 constituents which have market capitalizations of at least $400M, and trade for at least $1/share. This article presents a basket of 10 stocks with market capitalizations between $100M and $399M - aptly named A Potential "Multi-bagger" Portfolio - with their closing prices last week and YTD.

American Cannabis MSOs: (Read: The 12 Largest American Cannabis MSOs Collapsed 73% In 2022)

1. Acreage (ACRDF/ACRHF): Y/E 2022 Mkt. Cap.: $141M; Y/E Stock Price: $1.20; 2022 Performance: -51.9%
   • Last week: +1.2%; +33.3% YTD
2. Ascend (AAWH): Y/E 2022 Mkt. Cap.: $163M; Y/E Stock Price: $1.30; 2022 Performance: -80.2%
   • Last week: -2.9%; +4.6% YTD
3. Ayr (AYRWF): Y/E 2022 Mkt. Cap.: $124M; Y/E Stock Price: $1.21; 2022 Performance: -92.0%
   • Last week: +2.4%; +6.6% YTD
4. Jushi (JUSHF): Y/E 2022 Mkt. Cap.: $246M; Y/E Stock Price: $0.74; 2022 Performance: -77.2%
   • Last week: -5.3%; -2.7% YTD
5. Planet 13 (PLNHF): Y/E 2022 Mkt. Cap.: $245M; Y/E Stock Price: $0.68; 2022 Performance: -76.6%
   • Last week: -8.0%; +33.3% YTD

Sub-total: Last week: -2.5%; +14.6% YTD

Canadian Cannabis LPs:  (Read: The 5 Largest Canadian Cannabis LP Stocks Collapsed 66% In 2022)

1. Aurora (ACB): Y/E 2022 Mkt. Cap.: $358M; Y/E Stock Price: $0.89; 2022 Performance: -83.5%
   • Last week: -4.0%; +9.0% YTD
2. Organigram (OGI): Y/E 2022 Mkt. Cap.: $292M; Y/E Stock Price: $0.78; 2022 Performance: -55.4%
   • Last week: -3.0%; +23.1% YTD

Sub-total: Last week: -3.5%; +15.6% YTD

Psychedelic Drug Stocks: (Read: 6 Largest Psychedelic Drug Stocks Were -20% In December)

1. Seelos Therapeutics (SEEL): Y/E 2022 Mkt. Cap.: $100M; Y/E Stock Price: $0.65; 2022 Performance: -60.5%
   • Last week: +2.2%; +43.1% YTD
2. Cybin (CYBN): Y/E 2022 Mkt. Cap.: $100M; Y/E Stock Price: $0.29; 2022 Performance: -75.8%
   •  Last week: -8.9%; +41.4% YTD

Sub-total: Last week: -1.5%; +42.6% YTD

Plant-Based Food Stock (Read: Largest Plant-Based Food Stocks Index Collapsed 83% In 2022)

1. Tattooed Chef (TTCF): Y/E 2022 Mkt. Cap.: $121M; Y/E Stock Price: $1.24; 2022 Performance: -92.0%
   • Last week: -9.7%; +5.6% YTD

Grand Total: Last week: -3.5%; +16.5% YTD

As you undoubtedly know, the term "multi-bagger" refers to a double, triple, 4-fold, 500%, or more, return in a stock and is used for this portfolio because its constituents would have to advance 6-fold (i.e. 600%), on average, just to get back to where they stood at the beginning of 2022.

In comparison, the "Rags-to-Riches" Portfolio of 14 stocks with market capitalizations in excess of US$400M was DOWN 1.5% last week but is still UP 8.0% YTD.

More By This Author:

 "Rags-To-Riches" Portfolio Update: Week Ending January 20, 2023
Roundup: 5 Cannabis Category Performances
Largest Psychedelic Stocks +3% This Week; Now +15% YTD