Monday, January 30, 2023
Cannabis News Daily
No Result
View All Result
  • Home
  • Cannabis News
  • Medical Marijuana
  • Legalization
  • Cannabis Business
  • Cannabis Laws
  • Cannabis Retail
No Result
View All Result
  • Home
  • Cannabis News
  • Medical Marijuana
  • Legalization
  • Cannabis Business
  • Cannabis Laws
  • Cannabis Retail
No Result
View All Result
Cannabis News Daily
No Result
View All Result
Home Cannabis News

Large LPs Lead Canadian Cannabis Stocks Lower by Nearly 10% in July – New Cannabis Ventures

cannabisnews by cannabisnews
August 1, 2021
in Cannabis News
0
Large LPs Lead Canadian Cannabis Stocks Lower by Nearly 10% in July – New Cannabis Ventures
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter


After breaking a three-month losing streak with a 1% gain in June, the Canadian Cannabis LP Index fell sharply in July, declining 9.8% to  324.18:

The index, which fell 30.1% in 2020 to end at 275.16, is up 13.6% over the past year and 17.8% year-to-date in 2021:

It remains substantially below the all-time closing high of 1314.33 in September 2018, just ahead of Canadian legalization. In March 2020, it posted a new 52-week closing low of 196.10, a level not seen since late 2016, and it closed 65.3% above that level at the end of July:

The Canadian Cannabis LP Index, which is rebalanced monthly, included 38 qualifying publicly traded licensed producers that traded in Canada at the end of June, with equal weighting for each stock. Each of the members was also included in a sub-index, with 3 in the Canadian Cannabis LP Tier 1 Index, 15 in the Canadian Cannabis LP Tier 2 Index and 20 in the Canadian Cannabis LP Tier 3 Index during the month. At the end of June 2020, we revised the rules for inclusion, requiring companies to have a price of at least C$0.20 unless they are generating at least C$2.5 million quarterly from their cannabis production operation. Previously, we required revenue in excess of C$1 million for stocks trading below C$0.20. There are currently about two dozen publicly traded LPs that fail to qualify.

Tier 1

Tier 1, which included the LPs that are generating cannabis-related sales of at least C$25 million per quarter, fell 20.6% to 558.85 in July. Tier 1, which dropped 23.9% in 2020 when it ended at 488.96, has rallied 14.3% in 2021. We have increased the minimum revenue required to be included over time. At the beginning of 2021, we raised it from C$20 million. During 2019 and the first half of 2020, companies needed to generate revenue in excess of C$10 million for inclusion. In 2018, we used C$4 million as the hurdle.

This group included Aurora Cannabis (TSX: ACB) (NASDAQ: ACB), Canopy Growth (TSX: WEED) (NASDAQ: CGC),  and Tilray (TSX: TLRY) (NASDAQ: TLRY).

Among these largest LPs by revenue, Aurora Cannabis was the worst performer at -22%, while Tilray, which fell 18.6%, declined the least.

Tier 2

Tier 2, which included the LPs that generate cannabis-related quarterly sales between C$5 million and C$25 million, fell 10.0% to 503.90. In 2020, it lost 35.9% in 2020, closing at 365.19, and it is up 38.0% in 2021. Prior to July 2020, companies needed revenue in excess of C$2.5 million to be included in this tier.

This group included 48North (TSXV: NRTH) (OTC: NCNNF), Aleafia Health (TSX: AH) (OTC: ALEAF), Auxly (TSX: XLY) (OTC: CBWTF), Cronos Group (TSX: CRON) (NASDAQ: CRON), Decibel Cannabis (TSXV: DB) (OTC: DBCCF), Delta 9 (TSX: DN) (OTC: DLTNF),  Entourage Health (TSXV: ENTG) (OTC: WDDMF), HEXO Corp (TSX: HEXO) (NYSE: HEXO), Indiva (TSXV: NDVA) (OTC: NDVAF) MediPharm Labs (TSX: LABS) (OTC: MEDIF), Organigram (TSX: OGI) (NASDAQ: OGI),  The Green Organic Dutchman (CSE: TGOD) (OTC: TGODF), Valens Company (TSX: VLNS) (OTC: VLNCF), Village Farms (TSX: VFF) (NASDAQ: VFF) and VIVO Cannabis (TSX: VIVO) (OTC: VVCIF).

The best performer for the third straight month was Decibel Cannabis, which gained 7.8%. The weakest name was HEXO Crop, down 31.3%.

Tier 3

Tier 3, which included the 20 qualifying LPs that generate cannabis-related quarterly sales less than C$5 million, sank 8.0% as it closed at 70.26. It ended at 66.59 in 2020, declining 31.2%, and is up 5.5% in 2021. Pure Extraction Technologies(CSE: PULL) (OTC: PRXTF), which has been heavily promoting its stock, was the strongest performer, gaining 62.5%. The worst performer was Neptune Wellness (TSX: NEPT) (NASDAQ: NEPT), falling 29.9%.

The returns for the overall sector varied greatly, with 4 names posting gains and 6 declining by more than 20%. The entire group posted a median return of -11.0%:

For August, the overall index will have 39 constituents, with the addition of Cannara Biotech (TSXV: LOVE) (OTC: LOVFF) to Tier 2.

In the next monthly review, we will summarize the performance for August and discuss any additions or deletions. Be sure to bookmark the pages to stay current on LP stock price movements within the day or from day-to-day.

Get ahead of the crowd by signing up for 420 Investor, the largest & most comprehensive premium subscription service for cannabis traders and investors since 2013.

Alan Brochstein, CFA
Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email

Get Our Sunday Newsletter




In This Article:

48North, ACB, AH, aleaf, Aleafia Health, Aurora Cannabis, auxly, Canopy Growth, cbwtf, CGC, CRON, Cronos Group, db, dbccf, decibel cannabis, Delta 9, dn. dltnf, entg, entourage health, Green Organic Dutchman, Hexo, hexo corp, INDIVA, Labs, medif, MediPharm Labs, ncnnf, NDVA, ndvaf, NEPT, neptune, nrth, OGI, Organigram, prxtf, pull, pure extracts technologies, TGOD, TGODF, Tilray, TLRY, Valens, VFF, Village Farms, vivo cannabis vivo, vlncf, vlns, vvcif, WDDMF, WEED, weedmd, xly

Related News:

Picking the Right Cannabis Stocks Has Become Increasingly Important

What’s New With Cannabis Stocks for the Week Ending 07/30/21

Bootstrapped Edibles Company Wana Brands on Track to Double Markets Served by Year-End

Tilray Reports $53.7 Million Cannabis Revenue in Q4 With 44% Adjusted Gross Margin






Source link

RELATED POSTS

Cannabis Control Division spokeswoman paid $125 an hour under no-bid contract | Local News

Referendum to stop Red Bluff Cannabis Ordinance fails, city to proceed as planned – KRCR

ShareTweetPin
cannabisnews

cannabisnews

Related Posts

Cannabis Control Division spokeswoman paid $125 an hour under no-bid contract | Local News

Cannabis Control Division spokeswoman paid $125 an hour under no-bid contract | Local News

by cannabisnews
March 26, 2022
0

Generating positive press about New Mexico’s burgeoning recreational cannabis industry is a high-dollar endeavor.The state’s new Cannabis Control Division...

Referendum to stop Red Bluff Cannabis Ordinance fails, city to proceed as planned – KRCR

Referendum to stop Red Bluff Cannabis Ordinance fails, city to proceed as planned – KRCR

by cannabisnews
March 26, 2022
0

Referendum to stop Red Bluff Cannabis Ordinance fails, city to proceed as planned  KRCR Source link

Warily, tribes prepare for cannabis ventures in New Mexico

Warily, tribes prepare for cannabis ventures in New Mexico

by cannabisnews
March 26, 2022
0

By MORGAN LEEAssociated Press SANTA FE, N.M. (AP) — Two tribal communities are ensuring they’ll be free from federal...

Ready or Not, New Mexico Adult-Use Sales Coming

Ready or Not, New Mexico Adult-Use Sales Coming

by cannabisnews
March 25, 2022
0

New Mexico will become the 13th state to launch commercial adult-use cannabis sales in the U.S. with an April...

Meet Rosie: The robot ensuring adequate cannabis supply as recreational sales start April 1

Meet Rosie: The robot ensuring adequate cannabis supply as recreational sales start April 1

by cannabisnews
March 25, 2022
0

"The biggest thing in cannabis is just making sure you have enough supply both to meet the demand of...

Next Post
A glance at Ohio’s proposed adult-use marijuana law

A glance at Ohio's proposed adult-use marijuana law

Voter initiative seeks to legalize recreational marijuana

Voter initiative seeks to legalize recreational marijuana

RECOMMENDED

Valley News – Column: Small producers deserve direct access to market

Valley News – Column: Small producers deserve direct access to market

March 26, 2022

Decriminalization: The pathway to legalization and cannabis equity | Nikki Fried – South Florida Sun Sentinel

March 26, 2022
  • 22M Fans
  • 121 Followers
  • 650 Followers
  • 23.7k Followers

MOST VIEWED

  • US Hemp and Cannabis Industry Leaders to Participate with Government at Event Celebrating New Legalization In Costa Rica

    US Hemp and Cannabis Industry Leaders to Participate with Government at Event Celebrating New Legalization In Costa Rica

    0 shares
    Share 0 Tweet 0
  • Oklahoma Cannabis Pioneer Joins Forces with Budding Cannabis Brand Ganja Goat Guru

    1 shares
    Share 0 Tweet 0
  • New Jersey Begins Accepting Recreational Cannabis License Applications: When Will Dispensaries Open?

    0 shares
    Share 0 Tweet 0
  • Federal Marijuana Legalization Bill May Receive House Floor Vote Next Week, Sources Say

    0 shares
    Share 0 Tweet 0
  • Legalizing recreational marijuana in Florida

    0 shares
    Share 0 Tweet 0

Recent News

Valley News – Column: Small producers deserve direct access to market

Valley News – Column: Small producers deserve direct access to market

March 26, 2022

Decriminalization: The pathway to legalization and cannabis equity | Nikki Fried – South Florida Sun Sentinel

March 26, 2022
Will SAFE Banking Act help?

Will SAFE Banking Act help?

March 26, 2022

CATEGORY

  • Cannabis Business
  • Cannabis Laws
  • Cannabis News
  • Cannabis Retail
  • Legalization
  • Medical Marijuana

Contact Us

  • Privacy & Policy
  • About Us
  • Contact Us

© 2021 Copyright Cannabis News Daily

No Result
View All Result
  • Home
  • Cannabis News
  • Medical Marijuana
  • Legalization
  • Cannabis Business
  • Cannabis Laws
  • Cannabis Retail

© 2021 Copyright Cannabis News Daily