Thursday , 16 September 2021

Pot And Psychedelic Stocks Declined 3.2% Last Week But Remain Up YTD

There are four pot- and psychedelic-related stock categories which I use to provide the clearest overview of the cannabis/psychedelic stock sector that is available anywhere. Below is a comparison of how each sub-category has performed in the last week, month-to-date (MTD), and year-to-date (YTD) and the stocks that have moved +/-5% last week.

An original article by Lorimer Wilson, Managing Editor of munKNEE.com – Your KEY To Making Money! that first appeared on TalkMarkets.com (see here)

1. The Pure-Play “Seed-to-Sale” Pot Stocks Index consists of two sub-sectors whose constituents derive 100% of their revenue from the marijuana sector, trade for at least US$1/share, and have a Market Capitalization of at least US$100M. It consists of 23 such constituents which, in total:

  • was -8.6% last week
  • has declined -9.9% so far in July (i.e. MTD) and
  • is now +9.2% YTD

a) The Canadian Pure-Play Licensed Producers Pot Stock Sub-Category Index consists of 6 constituents which:

  • was -12.3% last week, has declined -17.0% MTD, and is +2.7% YTD
    • Its constituents are: Canopy (CGC), Tilray (TLRY), Cronos  (CRON), Aurora (ACB), Organigram (OGI), and Hexo (HEXO).
      • No constituent advanced,
      • Only OGI declined by less than 5% and
      • 5 constituents declined in excess of 10% with Aurora declining by -14.6%, Tilray by -14.0%, Hexo by -12.4%, Canopy Growth by 11.6% and Cronos by 11.0%.
      • Details as to individual price movements and the reasons why can be ascertained by checking the trading symbol of the constituents of interest.

b) The American Pure-Play Multi-State Operators Pot Stock Sub-Category Index consists of 17 constituents which:

  • was -7.4% last week, has declined -7.6% MTD, and is now +11.6% YTD
    • Its constituents are: Curaleaf (CURLF), Green Thumb (GTBIF), Trulieve (TRSSF), Verano (VRNOF), Cresco (CRLBF), TerrAscend (TRSSF), Columbia (CCHWF), Harvest Health (HRVSF), Ascend Wellness (AAWH.U), Planet 13 (PLNHF), Ayr (AYRWF), Jushi  (JUSHF), 4 Front (FFNTF), Charlotte’s Web (CWBHF), Gage (GAGE), Goodness Growth (GDNSF) and Acreage (ACRDF & ACRHF).
      • No constituent advanced,
      • 3 constituents declined by less than 5%, namely: Ayr, Goodness Growth and 4Front Ventures and
      • 14 constituents declined by more than 5% with TerrAscend, Planet 13 and Trulieve declining the most, by -13.6%, -13.0% and 11.1%, respectively.
      • Details as to individual price movements and the reasons why can be ascertained by checking the trading symbol of the constituents of interest.

2. The Ancillary Pot Stock Sub-Category Index of 8 constituents tracks the performance of companies that provide goods and services to cannabis operators and have a Market Capitalization of at least US$100M and it

  • was -3.2% last week, has declined -3.7% MTD and is now +28.9% YTD
    • Its constituents are: AFC Gamma (AFCG), Forian (FORA), Grow Generation (GRWG), Hydrofarm (HYFM), Innovative (IIPR), Scotts Miracle-Gro (SMG), Turning Point (TPB), and Village Farms (VFF).
      • Only 1 constituent advanced (IIPR @+2.5%)
      • 3 constituents declined by less than 5%, namely: Turning Point, Scotts and
      • 4 constituents declined in excess of 5% with GrowGeneration and Hydrofarm declining by -16.9% and -16.7%, respectively.
      • Details as to individual price movements and the reasons why can be ascertained by checking the trading symbol of the constituents of interest.

3. The Pure-Play Marijuana & Mushroom Psychedelic Drug Stocks Sub-Category Index

Approximately 100 clinical-stage marijuana and mushroom/ketamine psychedelic drug stocks now trade on the various North American stock exchanges and they are more or less evenly divided between those researching the treatment of a variety of mental illnesses based on the use of “magic mushrooms” (psilocybin), ketamine, DMT, Ibogaine, LSD, or MDMA (“ecstasy”) AND those researching the treatment of mental illnesses based on the use of THC marijuana.

The Index consists of 8 clinical-stage drug companies in each of the marijuana and mushroom categories and have market capitalizations in excess of $50M and less than $500M.

The Index consists of 16 constituents which, in total:

  • was -2.8% last week, declined -4.3% MTD and is +23.8% YTD

a) The Marijuana-Based Category

  • was -10.6% last week, has declined -11.4% MTD, and is now -4.1% YTD
    • Its constituents are: Corbus (CRBP), Zynerba (ZYNE), MGC (MGCLF), Revive (RVVTF),  Zelira (ZLDAF), Tetra Bio (TBPMF), Allied Corp. (ALID), and Enveric (ENVB).
      • 4 constituents advanced or were unchanged in price,
      • 4 constituents declined with Enveric, Corbus and Zynerba declining the most, by -15.0%, -14.0% and -11.1%, respectively.
      • Details as to individual price movements and the reasons why can be ascertained by checking the trading symbol of the constituents of interest.

b) The Mushroom/Ketamine-Based Category

  • was +3.1% last week, has advanced +1.0% MTDs, and is now +60.6% YTD
    • Its constituents are: Mydecine (MYCOF), Red Light (TRUFF), Seelos (SEEL), Field Trip (FTRPF), Numinus (LKYSF), Small Pharma (DMTTF), Cybin (CLXPF), and Awakn Life (AWKN)
      • 5 constituents advanced in price with Small Pharma (+21.2%), Field Trip (+8.5%) and Cybin (+8.4%) going up the most.
      • 3 constituents declined in price with Seelos declining the most (9.1%).

4. The Conservative Pot Stock Index consists of 8 major tobacco, beer/liquor, big pharma, and convenience store constituents that have bought into marijuana companies, and compares their performances with those of their associated marijuana companies. The index was:

  • was -1.2% last week, has declined -2.3% MTD, and is now +4.7% YTD with an average dividend yield of 2.5%.
  • its associated marijuana companies – Auxly (CBWTF) and Fire & Flower (FFLWF) – were -6.3% last week but are still +18.2% YTD, on average but pay out no dividends.
  • Its constituents are: Altria (MO), Imperial Brands (IMBBY), Novartis (NVS),  Constellation (STZ), Molson Coors (TAP), Anheuser Busch(BUD), Couche-Tard (ANCUF), and British American (BTI).
    • No constituents had price changes of +/-5% last week.

The above 4 non-tradable indices replicate the performance of a portfolio investing an equal amount of money in each company in the various cannabis/psychedelic categories, with daily rebalancing to maintain equal weight.

Summary Performance

The 55 marijuana, marijuana-related and psychedelic stocks tracked in the above indices were, on average:

  • down -3.2% last week, on average, have declined -4.1% MTD, and are now +14.5% YTD

Were we to exclude the 8 constituents in the Conservative Pot Stock Index the 47 constituents in the other 3 categories were:

  • down -4.6% last week, on average, have declined -5.3% MTD and are now +22.8% YTD.

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