Marijuana Stocks

The List of Marijuana Stocks NOT Suffering Right Now

Some days, facing the news cycle maelstrom feels overwhelming. And we’re in a period where all news is seemingly bad news.

A couple of weeks ago, it looked as if pot stocks were bottoming out and the hurricane of negative headlines for cannabis was coming to an end.

Unfortunately, in recent days, we’ve witnessed an abrupt reversal of fortune from the North American Marijuana Index.

So for this week’s Making the Grade, I wanted to remind investors of the top performers over the past month. The sun may not be shining on all pot stocks right now, but a few are enjoying a good run.

Over the past month, the index has been down nearly 10%. And most of that damage was done in just the past week…

Chart - North American Marijuana Index

Partial blame can be laid at the feet of a series of earnings misses, like those from Canopy Growth Corp. (NYSE: CGC), Greenlane Holdings (Nasdaq: GNLN), Harvest Health & Recreation (OTC: HRVSF) and Tilray (Nasdaq: TLRY).

Not to mention the ongoing “gone rogue” drama emanating from CannTrust Holdings (NYSE: CTST) on a near-daily basis.

In moments like this, it’s easy to forget what good news sounds like. But it’s out there…

Where the Sun Is Shining

Let’s look at the top performers from the past month.

These are companies that have broken from the pack and are soaring. We’re hopeful they don’t pull an Icarus by flying too close to the sun…

Chart - 15 Best-Performing Pot Stocks

International cannabis and CBD producer Ignite International Brands (CSE: BILZ) has seen its shares blast more than 100% over the past few weeks.

The company announced partnerships with WeedMD’s (OTC: WDDMF) subsidiary, CX Industries, as well as MMS Distribution and WHSmith. These helped spark a tremendous bull run.

Dixie Brands’ (OTC: DXBRF) shares have been on fire as well, surging more than 50% as the company announced a THC solubility breakthrough and a partnership with AriZona Beverages.

High Tide (OTC: HITIF) shares have been flying high as its Canna Cabana stores have been opening across Alberta.

Auxly Cannabis (OTC: CBWTF) got a spark from Imperial Brands’ $123 million investment. It’s been able to hold steady through its CEO resigning and its second quarter earnings results.

Like Auxly, Charlotte’s Web Holdings (OTC: CWBHF), Integrated Cannabis Company (OTC: ICNAF), MediPharm Labs (OTC: MEDIF) and TerrAscend Corp. (OTC: TRSSF) have all pulled back from their recent highs but are still holding steady.

So we can see there are plenty of positives in the cannabis space… despite the negative headlines that recently overshadowed them.

Where It Ain’t…

Now, shares of companies fall for a variety of reasons.

Some of them are self-inflicted. Some aren’t. They’re just caught in the undertow of the broader sector or market…

Chart - 15 Worst-Performing Pot Stocks

Going through the list, we see a number of household names… Acreage Holdings (OTC: ACRGF), CV Sciences (OTC: CVSI), Green Growth Brands (OTC: GGBXF), India Globalization Capital (NYSE: IGC) and OrganiGram Holdings (Nasdaq: OGI).

Of course, there are also names on this list that aren’t surprising, like CannTrust and Tilray.

Acreage is tied at the hip with Canopy Growth Corp. (which barely didn’t make this list). And that’s because Canopy has agreed to acquire Acreage whenever the federal legalization of cannabis changes in the U.S. But shares have felt extra pressure because the deal was signed under former CEO Bruce Linton’s leadership.

But that’s an overreaction in Acreage shares to me.

Same with OrganiGram. The Canadian producer’s shares were upgraded to the TSX, and it obliterated earnings last month.

But shares are under pressure because the entire Canadian pot stock sector has buckled under the weight of CannTrust, Canopy and Tilray.

CV Sciences’ shares were pummeled after the company missed second quarter expectations.

Meanwhile, Green Growth Brands announced a secondary offering.

And though India Globalization shares pulled back nearly 30% over the past month, they’re still up 278% on the year.

Sunniva (OTC: SNNVF), the worst performer over the past month, is facing some short-term problems. Shares were sideswiped by a several-month delay in its California operations. The company’s general contract said utilities won’t be connected to its Cathedral City glasshouse for some time. And genetic material won’t be onboarded to the facility until 2020.

The one-day drop from that announcement essentially accounts for the 46% loss Sunniva shares have suffered over the past month.

In short, pot stocks have been exceptionally volatile lately.

On any news, shares of cannabis companies have been popping – or dropping – 20% or more… often in a single day.

But even though bad news has been in the headlines, there is good news out there. And we’re seeing shares soar because of it.

It’s been rocky in the near term for cannabis. Though the long-term outlook is exceedingly positive. We just have to weather the storm.

Here’s to high returns,

Matthew


About

Matthew’s expertise ranges from classic industries such as oil and mining to cutting-edge markets like small cap tech, cannabis, 3D printing and cloud computing. With almost two decades of financial experience under his belt, Matthew’s knack for finding market trends never fails to surprise us, which is why we keep a close eye on his free e-letter, Profit Trends.

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