Capital 10X – Pot Stocks Weekly Performance Wrap (November 29th, 2019)

Below is a comparison of the biggest winners and losers in PotStocks this week, grouped by market cap and country. See whether your picks are outperforming or if you need to rebalance your portfolio.

The High Level

This week saw a few earnings reports, but with American Thanksgiving, it was relatively quiet. The HMMJ index was down 3%.

Overall it was a big week for outdoor growers with both 48North and WeedMD reporting earnings along with the results of their first harvest. The results were similar.

48North disappointed investors with low yields — they had “estimated” 40,000 kg, while the actual harvest was 12,000 kg. We are also yet to see the crop quality. Investors punished 48North with the stock falling over 20% after results were released. Since that time, the stock has sat relatively flat.

WeedMD was in the same boat. Their outdoor harvest yielded 8,000 kg. compared to their expected yield of 27,000 kg. Similar to many other LPs, Q3 financials showed revenues down compared to last quarter.

Overall, the strong harvest from WeedMD confirms that outdoor cannabis production has potential, but only if done right. Their low production costs will give them a significant margin advantage as price compression starts hitting the market. If the quality is on point, companies with higher cost greenhouse production could be in (bigger) trouble.

Looking at our favourite U.S. underperformer, MedMen had another tough week after releasing earnings. The stock fell 22%, which makes it back to back weeks of substantial losses with a 30% drop last week. To make a long story short, the company is headed for bankruptcy with no signs of support coming. 

Pot Stocks Group Performance

Source: Yahoo Finance

Canadian Pot Stocks – Large-Cap Weekly Performance

Source: Yahoo Finance

Canadian Pot Stocks – Large-Cap YTD Performance

Source: Yahoo Finance

Canadian Pot Stocks – Mid-Cap Weekly Performance

Source: Yahoo Finance

Canadian Pot Stocks – Mid-Cap YTD Performance

Source: Yahoo Finance

Canadian Pot Stocks – Small-Cap Weekly Performance

Source: Yahoo Finance

Canadian Pot Stocks – Small-Cap YTD Performance

Source: Yahoo Finance

U.S. Pot Stocks – Large-Cap Weekly Performance

Source: Yahoo Finance

U.S. Pot Stocks – Large-Cap YTD Performance

Source: Yahoo Finance

U.S. Pot Stocks – Mid-Cap Weekly Performance

Source: Yahoo Finance

U.S. Pot Stocks – Mid-Cap YTD Performance

Source: Yahoo Finance

U.S. Pot Stocks – Small-Cap Weekly Performance

Source: Yahoo Finance

U.S. Pot Stocks – Small-Cap YTD Performance

Source: Yahoo Finance

The opinions provided in this article are those of the author and do not constitute investment advice. Readers should assume that the author and/or employees of Capital 10X hold positions in the company or companies mentioned in the article. For more information, please see our Content Disclaimer.

Evan Veryard
Evan Veryard has a Bachelor's of Chemical Engineering from McGill University and a MaSc. of Chemical Engineering from RMC. He has over 6 years of research experience focusing on industrial materials. Address: 682 Indian Road, Toronto, Ontario, M6P 2C9. Phone: 416-721-8257.

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