Capital 10X – Pot Stocks Weekly Performance Wrap (November 22nd, 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

After last week’s Canadian earnings fiasco led to a substantial drop, this week saw things bounce back with the U.S. government and a few MSO earnings providing a boost.

The HMMJ rose 6% on the week, led largely by a rise in Canadian large-caps. U.S. large and small caps also had a solid week. However, every group except U.S. large-caps are still down on the year.

Of note were strong earnings results from Trulieve, Curaleaf, and GTII. These companies are running circles around Canadian LPs in terms of operational efficiency and sales, demonstrating the power of quality operations and the sheer sales volume in the U.S.

This week we took a closer look at Trulieve’s numbers to understand how dominating their performance really was compared to the Florida market. With more catalysts on the way, the most expensive U.S. MSO still warrants serious investment consideration.

Switching back to Canadian LPs, most companies saw a solid rebound this week. While that’s good news for investors, we don’t believe the pain is over yet. There is still a problem with cannabis oversupply(of product consumers don’t want), more write-downs are on the way, and the possibility of tax-loss selling is hanging most stocks.

Until there is a shift in market/company fundamentals, there is no reason to believe there is going to be a miraculous rebound in Canadian Potstocks.

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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