Capital 10X – Pot Stocks Weekly Performance Wrap (December 20th, 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

While this was a big week for the cannabis industry with 2.0 products becoming available for consumers, it was relatively calm on the investing front. As has been the trend, the index fell 4% again this week, now settling down nearly 35% YTD.

As expected, the news flow this week was limited, however, a few market-moving events took place.

The first was a slanderous and baseless short attack against Trulieve. While the stock fell 20% on the day, it has somewhat climbed back, finishing down 14%. After the attack, multiple investment firms responded in defense of the company along with CEO Kim Rivers, who also made open market purchases afterward.

In another show of confidence, company insiders agreed to voluntarily extend the share-lock-up agreement from the end of January to July. Any investors who have been eyeing Trulieve as an investment opportunity should see this as an early Christmas gift. 

In a positive sign for the industry, two U.S. MSOs managed the rare feat of closing financings at a time when the capital markets have largely closed their doors. Curaleaf announced a $275 million senior secured term loan, while iAnthus announced the closing of the third tranche of funding for $36 million.

iAnthus finished up 3% on the week, while Curaleaf is down 4%, although their stock reacted favourably to today’s news.

Looking to Canada, two companies reported earnings with mixed results. Cannabis retailer Fire & Flower showed some of the first positive results in a while and finished up slightly on the week.

In contrast, HEXO’s quarterly results painted a grim picture, in what investors can only hope isn’t a sign of coming reports. You can read a full breakdown of the story here. Overall the stock climbed slightly after earnings, down 11% on the week.

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.
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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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