Monday , 3 October 2022

Most Cannabis Stocks Now At 52-Week Lows

Is now the time to buy one or two of the deeply discounted cannabis stocks outlined in this article? The majority of them are now trading BELOW their previous 52-week lows. Hopefully the information below will help you in making that decision.

By Lorimer Wilson, Founder & Managing Editor of munKNEE.com – A financial site for sore eyes and inquisitive minds! @HELP

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 209 cannabis and ancillary companies currently trading.

@$Our 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.

Below are the specifics by constituent per sector:

Note that each constituent has 5 areas of additional information that are imperative for any individual considering investing in this sector:

  1. The company name is hyperlinked to its web site to provide you with a description of the company and an analysis of its stock.
  2. The trading symbol is hyperlinked to additional financial data and commentary on the company (where available).
  3. 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).
  4. The percentage change is hyperlinked to a chart of the company’s stock performance.
  5. 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.

Our Pure-Play Canadian LP Pot Stock Index

Below is how the Canadian Licensed Producer constituents performed in January, in descending order, and the percent to which they have each descended below their previous 52-week lows in brackets:

  1. Cronos (CRON): -13.0% YTD(-8.8% from previous 52-week low)
  2. Canopy Growth (CGC):-16.7% YTD(-8.7%)
  3. Organigram (OGI): -20.0% YTD; (-7.9%)
  4. Tilray (TLRY): -22.0% YTD; (-13.8%) 
  5. Aurora (ACB): -27.7% YTD; (-25.1%) 

Our Pure-Play Canadian LP Pot Stock Index declined -20.0% in January and is now -13.4% lower than at any point in the last 52 weeks. Time to buy in? Hopefully the above information will help you in making that decision.

Our Pure-Play American MSO Pot Stock Index 

@$$Below is how the American Multi-State Operator constituents performed in January, in descending order, and the percent to which they have each descended below their previous 52-week lows in brackets or, as with 44% of of the constituents, are still above their 52-week lows:

  1. Jushi (JUSHF): +3.1% YTD; (+10.6% from 52-week low)
  2. Goodness Growth (GDNSF): -3.5% YTD; (+37.5%)
    • Has more than 63% chance of experiencing financial distress in the next few years of operation
  3. Columbia Care (CCHWF): -7.3% YTD; (-2.2% from previous 52-week low)
  4. Acreage (ACRDF/ACRHF): -7.7% YTD; (+8.2%)
  5. Planet 13 (PLNHF): -11.5%; (-8.7%)
    • Has about a 25% chance of experiencing some form of financial distress in the next two years of operation
  6. Cresco (CRLBF): -12.1% YTD; (-2.7%)
  7. Ayr Wellness (AYRWF): -13.7% YTD; (+7.7%)
  8. Gage Growth (GAEGF): -17.3% YTD; (+5.0%) 
    • in the process of being acquired by TerrAscend
  9. TerrAscend (TRSSF): -17.3% YTD; (+3.5%)
  10. Verano (VRNOF): -18.0% YTD; (+4.7%)
  11. Curaleaf (CURLF): -21.7% YTD; (-8.3%)
  12. Green Thumb (GTBIF): -23.1% YTD; (-7.1%)
  13. Trulieve (TCNNF): -28.3% YTD; (-19.3%)
  14. Valens (VLNS): -29.0% YTD; (-24.3%)
    • Has a 50% chance of going through some form of financial distress in the next two years
  15. Ascend Wellness (AAWH): -32.9% YTD; (-14.5%)
  16. 4Front Ventures (FFNTF): -36.6% YTD; (-30.4%)

@$$$The munKNEE Pure-Play American MSO Pot Stock Index declined -20.2% in January and is now -5.6% lower than at any point in the last 12 months.

In Summary

The munKNEE Pure-Play “Seed-to-Sale” Pot Stocks Index:

  • went DOWN -7.5% last week,
  • went DOWN -20.2% in January and
  • is now DOWN -7.1% from its previous 52-week low
    • with the Canadian LPs segment DOWN -4.2% last week, DOWN -20.0% YTD and DOWN -13.4% from its previous 52-week low while
    • the American MSOs segment went DOWN -8.2% last week, is DOWN -20.2% YTD and is now DOWN -5.6% from its previous 52-week low.

Is now the time to buy one or two of these deeply discounted cannabis stocks? Hopefully the above information will help you in making that decision.

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