Tuesday , 21 September 2021

Pot & Psychedelic Stock Category Down 4% In July; Now +24% 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 performed last week, during the month of July, and YTD and the stocks that moved +/-5% last week.

By Lorimer Wilson, Managing Editor of munKNEE.com – Your Key To Making Money!

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. The Index consists of 23 such constituents which, in total:

  • was -0.2% last week; declined -11.6% during the month of July and is now +5.7% YTD.

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

  • was +0.8% last week, declined -17.1% during the month of July, and is now +2.5% YTD.
    • Its constituents are: Canopy (CGC), Tilray (TLRY), Cronos  (CRON), Aurora (ACB), Organigram (OGI), and Hexo (HEXO).
      • The major movers (+/- 5%) last week were:
        • Tilray which was +7.5% and is now +76.9% YTD
          • reported very favorable fourth-quarter fiscal 2021 figures on Wednesday (see article here).
        • Organigram which was  +6.5% and is now +97.0% YTD.
          • reported favorable Q3 financial results last week (see article here).

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

  • was -0.5% last week, declined -9.7% during the month of July, and is now +6.7% 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).
      • The major movers (+/- 5%) last week were:
        1. Verano: +14.0%; N/A YTD
          • announced that it has bought buying WSCC, Inc ., also known as Sierra  Well, adding two operational dispensaries and an active cultivation and production facility in Nevada along with two real estate properties in Carson City and Reno.
        2. Curaleaf: -5.6% and is now +0.6% YTD
        3. TerrAscend: -5.6% last week and is now -19.4% YTD
        4. Goodness Growth: -5.9% and is now +8.1% YTD
        5. Planet 13: -12.2% and is now -5.7% YTD

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 +0.8% last week, declined -1.2% during the month of July and is now +24.8% 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).
      • The major movers (+/- 5%) last week were:
        • Turning Point: +16.4% and is now +19.1% YTD
          • reported financial results for the second quarter ended June 30, 2021 that surpassed analyst estimates.
        • Forian: -13.0%; N/A YTD

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. It consists of 16 constituents which, in total:

  • was -2.8% last week; declined -6.9% during the month of July and is now +11.7% YTD.

a) The Marijuana-Based Category

  • was -3.5% last week, declined -16.4% during the month of July, and is now -9.4% YTD.
    • Its constituents are: Corbus (CRBP), Zynerba (ZYNE), MGC (MGCLF), Revive (RVVTF),  Zelira (ZLDAF), Tetra Bio (TBPMF), Allied Corp. (ALID), and Enveric (ENVB).
    • The major movers (+/- 5%) last week were:
      1. Revive: -9.3% and is now -20.4% YTD
      2. Allied Corp.: -12.7% and is now +28.0% YTD

b) The Mushroom/Ketamine-Based Category

  • was -2.1% last week, advanced +0.2% during the month of July, and is +60.0% YTD
    • Its constituents are: Mydecine (MYCOF), Red Light (TRUFF), Seelos (SEEL), Field Trip (FTRPF), Numinus (LKYSF), Small Pharma (DMTTF), Cybin (CLXPF), and Awakn Life (AWKNF).
    • The major movers (+/- 5%) last week were:
      1. Small Pharma: -8.3%; N/A YTD
      2. Awakn Life: -6.5%; N/A YTD
        • announced that its shares commence trading on the OTC Market under the symbol “AWKNF” effective July 26, 2021 and would continue to trade on the NEO Exchange under its existing symbol “AWKN”.

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 -0.9% last week, declined 3.4% during the month of July, and is +3.6% YTD with an average dividend yield of 2.5%.
  • its associated marijuana companies – Auxly (CBWTF) and Fire & Flower (FFLWF) – were +1.1% last week but are still +21.8% YTD, on average but payout 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).
    • Only Anheuser Busch had a price change of +/-5% last week at -7.6% and is now -9.9% YTD on less than ideal Q2 financial results.

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 47 marijuana and psychedelic stocks tracked in the above indices were, on average:

  • down +0.4% last week, declined -4.3% during the month of July, and are now  +23.9% YTD

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About Lorimer Wilson

Lorimer Wilson with Gold BarLorimer Wilson is an economic & financial commentator who has written numerous articles on economics, finance, precious metals, and the cannabis stock sector. He is the Managing Editor of munKNEE.com, a site that provides a selection of the internet’s best finance articles in an edited, reformatted and abridged format to ensure a fast and easy read.

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