Saturday , 4 February 2023

Take Note: A “Rags-to-Riches” Portfolio for 2023

The performance of cannabis, psychedelic and plant-based food stocks and in 2022 were just horrible and, after such massive declines, the market could well offer high returns to investors in 2023 and beyond. That being said, however, just because a stock or a sector declines doesn’t mean that it will rally, but the market is very oversold and offers great valuations for good companies. As such, I am optimistic that the market will perform better in 2023 and think the sell-off could be a great opportunity to invest in some of those stocks. Such being the case, munKNEE.com has created a basket of 14 stocks aptly named the Rags-to-Riches Portfolio for 2023.

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

As one of the many readers of my weekly reports you are well aware of the performance of the following munKNEE indices in 2022:

  • the American Cannabis MSOs Index was DOWN 73%;
  • the Canadian Cannabis LPs Index was DOWN 60%;
  • the Psychedelic Stocks Index was DOWN 54% supplemented by 6 nano-stocks operating ketamine-assisted therapy clinics which were DOWN 79% and
  •  the Plant-Based Food Stocks Index which was DOWN 82%.

I have reduced the 28 equities being tracked in the indices above to the 14 stocks with market capitalizations of at least $400M, and trading for at least $1/share, and included them as the constituents in the Rags-to-Riches Portfolio. In this introduction I include their stock prices as of December 31st, 2022, and their performances in 2022, as follows, in alphabetical order:

  • American Cannabis MSOs: (Read: The 12 Largest American Cannabis MSOs Collapsed 73% In 2022)
    1. Cresco (CRLBF): Y/E 2022 Mkt. Cap.: $1.010M; Y/E Stock Price: $1.75; 2022 Performance: -73.8%
    2. Curaleaf (CURLF): Y/E 2022 Mkt. Cap.:  $3,280M; Y/E Stock Price: $3.91; 2022 Performance: -73.8%
    3. Green Thumb (GTBIF): Y/E 2022 Mkt. Cap.: $2,290M; Y/E Stock Price: $8.43; 2022 Performance: -62.0%
    4. TerrAscend (TRSSF): Y/E 2022 Mkt. Cap.: $540M; Y/E Stock Price: $1.10 ; 2022 Performance: -82.0%
    5. Trulieve (TCNNF): Y/E 2022 Mkt. Cap.: $1,770M; Y/E Stock Price: $7.56; 2022 Performance: -70.9%
    6. Verano (VRNOF): Y/E 2022 Mkt. Cap.: $1,190M; Y/E Stock Price: $3.08 ; 2022 Performance: -75.5%
      • Sub-total: Ave. Y/E Mkt. Cap: $1.680M ; Ave. Y/E Stock Price: $4.31; Ave. 2022 Performance: -66.7%
  • Canadian Cannabis LPs  (Read: The 5 Largest Canadian Cannabis LP Stocks Collapsed 66% In 2022)
    1. Canopy Growth (CGC): Y/E 2022 Mkt. Cap.: $1,380M; Y/E Stock Price: $2.27; 2022 Performance: -74.0%
    2. Cronos (CRON): Y/E 2022 Mkt. Cap: $1,060M; Y/E Stock Price: $2.27; 2022 Performance: -35.7% 
    3. Tilray (TLRY): Y/E 2022 Mkt. Cap.: $2,070M; Y/E Stock Price: $2.52; 2022 Performance: -62.0%
      • Sub-total: Ave. Y/E Mkt. Cap: $1,503M; Ave. Y/E Stock Price: $2.49; Ave. 2022 Performance: -62.0%
  • Psychedelic Drug Stocks (Read: 6 Largest Psychedelic Drug Stocks Were -20% In December)
    1. Atai (ATAI): Y/E 2022 Mkt. Cap.: $500M; Y/E Stock Price: $2.58; 2022 Performance: -66.2%
    2. Compass Pathways (CMPS): Y/E 2022 Mkt. Cap.: $402M; Y/E Stock Price: $7.81; 2022 Performance: -64.7%
    3. GH Research (GHRS): Y/E 2022 Mkt. Cap.: $611M; Y/E Stock Price: $9.54; 2022 Performance: -59.1%  
      • Sub-total: Ave. Mkt. Cap: $504M; Ave. Y/E Stock Price $6.64; Ave. 2022 Performance: -62.0%
  • Plant-Based Food Stocks (Read: Largest Plant-Based Food Stocks Index Collapsed 83% In 2022)
    1. Beyond Meat (BYND): Y/E 2022 Mkt. Cap.: $805M; Y/E Stock Price: $12.29; 2022 Performance: -80.8%
    2. Oatly Group (OTLY): Y/E 2022 Mkt. Cap.: $1,210M; Y/E Stock Price: $1.74; 2022 Performance: -78.1%
      • Sub-total: Ave. Mkt. Cap: $1,075M; Ave. Y/E Stock Price $7.02; Ave. 2022 Performance: -80.8%

Grand Total:

  • Ave. Y/E Mkt. Cap: $1,294M;
  • Ave. Y/E Stock Price: $12.79;
  • Ave. 2022 Stock Performance: -61.0%

Beginning next week, and weekly thereafter, I will report on the performances of the Portfolio, in total, and that of each of the 14 constituents, with any pertinent information as to the reasons for any major moves one way or the other.

Attention readers: Everyone likes competition so I challenge all you analysts and commentators out there to come up with your own hypothetical portfolios. The portfolio should have 10 to 15 constituents trading currently for at least $1/share, and market capitalizations on at least $1B.  Send me a notice in the Comment Section below that you have prepared such a portfolio and I will get back to you for the particulars. Please note that an edited version of the above article was first posted on TalkMarkets.com.

 

 

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