Sunday , 25 September 2022

Marijuana Smells But The Performance Of Their Stocks Stink!

The title of this article pretty much says it all. We know first hand or, at least, have been told that marijuana, that marijuana has a strong smell but, performance-wise, marijuana stocks absolutely stink DOWN 11.5% in total (Canadian LP and American MSO) this week and DOWN 56.7%, YTD, as highlighted in the article.

By Lorimer Wilson, Managing Editor of munKNEE.com

The munKNEE pure-play Canadian LPs Pot Stocks Index consists of the 5 largest vertically integrated (i.e. seed-to-sale) Canadian Licensed Producers (LPs) with market capitalizations of $300M or more and whose stocks trade for at least US$1/share and trade on one or more of the Canadian and/or American stock exchanges.

Below are the performances of its constituents for this week, in descending order, and YTD with the latest in analysis and commentary on each of the companies to be found here:

  1. Canopy Growth (CGC): UP 0.6% this week; DOWN 63.7% YTD
  2. Cronos (CRON): DOWN 4.1% this week; DOWN 22.2% YTD
  3. Organigram (OGI): DOWN 5.7% this week; DOWN 42.9% YTD
  4. Tilray (TLRY): DOWN 6.2% this week; DOWN 54.6% YTD
  5. Aurora (ACB): DOWN 8.3% this week; DOWN 73.6% YTD

In total, the munKNEE Canadian Pot Stocks Index was DOWN 7.9% this week and is now DOWN 55.9% YTD.

As I mentioned in my recent article on marijuana ETFs (see here), if you are interested in investing in the Canadian LP category the ETF with the largest percentage of such stocks is the Global X Cannabis ETF (POTX). (For comparison, POTX was DOWN 7.8%% this week and is DOWN “only” 48.4% YTD.)

For the adventuresome among you consider investing in one of the following leveraged (inverse or bull) ETFs:

  1. ETFMG 2x Daily Inverse Alternative Harvest ETF (MJIN)
  2. ETFMG 2x Daily Bull Alternative Harvest ETF (MJXL)
  3. BetaPro 2x Inverse Canadian Marijuana Companies ETF (HMJI)
  4. Horizons 2x Bull Marijuana Companies ETF (HMJU)

An “inverse” ETF is the way to go if you think the cannabis sector is going to decline considerably in the months ahead while a ‘bull” ETF is for those that think the sector is going to advance substantially going forward.

Later this weekend I will provide a similar article on the performance of the 13 stocks that make up the constituents of munKNEE pure-play American MSOs Pot Stocks Index. They have performed even worse than the Canadian LPs both this week and YTD.

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