Sunday, June 2, 2019

Cannabis (marijuana) stocks

The U.S. pot industry is emerging after marijuana stocks in Canada, where recreational cannabis went legal in 2018, initially grabbed investors' attention. Canadian marijuana stocks were the first to arrive on major U.S. exchanges. And they landed big investments from tobacco and alcoholic beverage companies Altria Group (MO) and Constellation Brands (STZ).

Recreational cannabis is now legal in 18 states and the District of Columbia. Medical marijuana use is legal in 37. Legal U.S. cannabis industry sales are forecast to jump 23% to around $22.8 billion in 2021, according to cannabis industry market researcher Headset.

in 2022, those sales are expected to accelerate, growing 24% to $28.3 billion. Those are far bigger sales figures than in less populous Canada. There, legal cannabis sales are expected to hit $4.06 billion this year and $5.35 billion next year. That's a bigger percentage gain, but in a market where the largest producers are still grappling with losses and escalating competition.

The MJ ETF peaked when recreational cannabis went into effect in the fall of 2018 after staging a massive run leading up to the highly anticipated event.

Since then, the onus has been on companies to deliver. Most of them have begun reporting enviably strong sales growth, but the euphoric valuations had priced in a generous amount of future success.

The cannabis market is still nascent and the THC and CBD markets have tremendous long-term potential. Headwinds in the form of regulations and capacity constraints appear to be abating as the industry starts to mature. The growth outlook remains very promising.

See also :  marijuana news

ETFs (by avg daily vol)  
(see below for a detailed comparison)  
  • MJ   ETFMG Alternative Harvest ETF  457K
  • THCX The Cannabis ETF   73K
  • YOLO  AdvisorShares Pure Cannabis ETF 50K
  • TOKE  Cambria Cannabis ETF   24K
  • CNBS  Amplify Seymour Cannabis ETF 15K
  • (Toronto:HMMJ  Horizons Marijuana Life Sciences Index ETF 176K)

Stocks (by market cap)                
Ticker       Company name Mkt Cap
  • CGC  Canopy Growth  8.715B; Ontario, Canada;  Canopy has a deal in place to buy U.S. cannabis operator Acreage Holdings. In February 2021, CEO David Klein said Canopy could enter the U.S. legal market for THC products "during calendar 2021".
  • TLRY  Tilray  6.215B; Ontario, Canada; Tilray has merged with Aphria.
  • CRON  Cronos  2.69B; Toronto, Canada
  • ACB  Aurora Cannabis  1.348B; Edmonton, Canada; medical cannabis products. As of September 2018, it had eight licensed production facilities, five sales licenses, and operations in 18 countries.  
  • --------
  • IIPR  Innovative Industrial Properties  1.286B; a REIT that acquires industrial properties and rents space to marijuana growers.
  • HEXO  HEXO Corp.  1.171B; Quebec-based 
  • OGI  Organigram  842.522M; Canada; The company’s stock began trading on the Nasdaq on May 21, 19. Previously it was traded in Canada and over the counter in the U.S.
  • KSHB  KushCo  440.088M; California; packaging supplies, vaporizer cartridges, heating technologies, batteries
  • CTST  CannTrust  361.912M; Ontario, Canada
  • CRBP  Corbus Pharmaceuticals   340.604M
  • NBEV  New Age Beverages  298.774M; Denver, Colorado
  • ZYNE   Zynerba Pharmaceuticals   260.90M;  Developes next-generation transdermal cannabinoid therapeutics. Using the non-euphoric CBD, Zynerba wants to improve the lives of patients affected by rare neuropsychiatric conditions.
  • PYX  Pyxus Int'l  140.531M; Morrisville, North Carolina; Tobacco company with a minor investment made in a few cannabis operators.
  • KERN  Akerna  102.477M; Orlando, Florida
  • SNDL Sundial Growers   Aug 1, 19 IPO
++Turning Point Brands (NYSE:TPB)
++GRWG  GrowGeneration , a hydroponics retailer
  • GW Pharmaceuticals (NASDAQ:GWPH) (UK-based) was acquired by Ireland-based Jazz Pharmaceuticals (NASDAQ:JAZZ) for $7.6 billion. (Completed in May 2021)
  • Aphria (APHA) acquired by Tilray (TLRY). (Dec 2020)
OTC Markets
The majority of U.S.-based cannabis companies and many foreign American Depository Receipts (ADRs) trade over the counter (OTC).  The over-the-counter markets typically have decreased liquidity and larger spreads compared to the large U.S. exchanges. 
  • TCNNF  (OTCMKTS) Trulieve Cannabis   4.687B   Quincy, Florida; focused on the medical markets in Florida
  • --------------
  • CURLF  (OTCMKTS)  Curaleaf  2.939B; Wakefield, Massachusetts; runs more than 100 dispensaries across more than 20 states.
  • GTBIF (OTCMKTS) Green Thumb Industries  2.07B; Chicago, Illinois; most of its retail locations are in Pennsylvania and Illinois
  • CRLBF (OTCMKTS) Cresco Labs  1.058B; Chicago, Illinois; draws a lot of revenue from its wholesale business
  • CWBHF (OTCMKTS)  Charlotte's Web  647.919M; Boulder, Colorado
  • TGODF  (OTCMKTS) The Green Organic Dutchman 644.674M; Mississauga, Canada
  • ACRGF   (OTCMKTS) Acreage Holdings  526.485M; NYC-based
  • CVSI  (OTCMKTS) CV Sciences  409.426M;  Nevada-based
  • ORHOF  (OTCMKTS)  Origin House  387.251M; Ottawa, Canada;  Invests in the legal cannabis sector, prefers to take majority stake in companies. 
  • MMNFF (OTCMKTS) MedMen Enterprises  351.475M; Culver City, California
  • GGBXF  (OTCMKTS)  Green Growth Brands  324.663M; Toronto, Canada; Offers cannabis, tetrahydro cannabidol, cannabidiol, and cannabis-infused consumer products, as well as technology and consulting services for the cannabis industry. As of June 12, 2019, it operated 50 Seventh Sense branded botanical therapy shops.
  • SPRWF  (OTCMKTS)  The Supreme Cannabis Company  296.619M  Toronto, Canada
  • CURR (OTCMKTS) CURE Pharmaceutical  154.265M; Oxnard, California
  • NXTTF   (OTCMKTS)  Namaste Technologies  125.366M; Vancouver, Canada
  • VVCIF (OTCMKTS)  VIVO Cannabis  113.304M; Canada 
  • TRTC  (OTCMKTS)  Terra Tech 54.163M; Irvine, California
  • IMLFF  (OTCMKTS)  InMed Pharmaceuticals  43.592M; Vancouver, Canada; develops cannabinoid-based therapies
  • CBDS  (OTCMKTS)  Cannabis Sativa  37.865M; Nevada; skin care products used to relieve pain for sore muscles, joints, arthritic, and back pain; 
  • CANN  (OTCMKTS)  General Cannabis  28.998M; Denver, Colorado
  • FFLWF (OTCMKTS)  Fire & Flower Holdings Corp.; 54.627M; Canada
July 2021: cannabis legalization spreads across the U.S. Eighteen states and Washington, D.C., have legalized cannabis for adult use. Thirty-seven states and D.C. allow medical marijuana.

Money is pouring into the legal cannabis market, potentially steering more U.S. consumers toward weed. Struggling beer and tobacco companies are using that trend to find new business. For example, cannabis drinks or sleek vaping devices and tins of prerolled joints. 

Horizons Marijuana Life Sciences Index ETF - Canada

Canada Marijuana Stocks
Canada's marijuana stocks launched their invasion of U.S. exchanges in February 2018, when Cronos Group (CRON) became the first straight-up pot company to list on the Nasdaq. In the months since, recreational pot use turned legal in Canada and seven other Canadian pot producers piled into U.S. exchanges competing to pick up mainstream credibility and a lot more investor cash.

Canopy Growth stock followed Cronos Group, listing on the New York Stock Exchange in May 2018. Canopy has since become the world's most valuable weed company, with a market capitalization of $9 billion.

Last July, Tilray followed, via an IPO — making it the first weed company to debut exclusively on a U.S. exchange. Every other Canadian pot producer trading on a U.S. exchange also trades in Canada.

Aurora Cannabis (ACB) listed on the NYSE in October, and Aphria (APHA) in November. Hexo hit the NYSE American in January. CannTrust landed on the NYSE in February, but CannTrust stock crashed after running afoul of regulators. Organigram (OGI) listed on the Nasdaq in May.

The companies can list on the U.S. platforms because they don't violate federal law in their own country.

Marijuana ETFs

Latin America
Legal sales in 2018 are estimated at $125 million, but analysts expect this to explode 100-fold to $12.7 billion by 2028.

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