The Canadian marijuana stocks on our list have little or no analyst coverage and have high Sortino Ratios
SmallCapPower | June 11, 2018: The Canadian marijuana stocks we’ve identified today do not get as much attention as some of their bigger competitors. However, they have impressive returns and have outperformed many others on a risk-adjusted basis. Our list today considers the cannabis stocks with the highest Sortino Ratio. This ratio measures stock returns in the context of downside risk (the risk that the price will decline). The higher the ratio, the more return you could receive for the risk you are taking. The Cannabis industry average Sortino Ratio is 0.5.
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Speakeasy Cannabis Club Ltd. (CSE:EASY) – $1.24
Cannabis
Speakeasy Cannabis Club is a Canada-based company that produces and sells high quality CBD oils. The Company is engaged in growing, extraction and genetics labs that assist in producing cannabis at its 80,000 square foot facility. Its campus is located on a 300-acre property in British Columbia’s Southern interior region, known as the Napa Valley of weed country.
- Market Cap: $53.1 Million
- Sortino Ratio – 156 Weeks: 1.99
- Sortino Ratio – 60 Months: 3.9
- YTD Total Return: 30.5%
Terrascend Corp. (CSE:TER, OTC:TRSSF) – $4.28
Cannabis
Terrascend is a Canada-based cannabis company operating a 60,000 square foot growing facility in Mississauga, Ontario, which utilizes hydroponic cultivation techniques. It also operates a network of cannabis clinics and a home-delivery service.
- Market Cap: $405.1 Million
- Sortino Ratio – 156 Weeks: 0.94
- Sortino Ratio – 60 Months: 2.9
- YTD Total Return: 41.3%
ABcann Global Corp. (TSXV:ABCN) – $1.59
Cannabis
ABcann Global is a licensed Canadian cannabis grower that currently produces 1,500 kg/year. Expansion plans are underway to increase capacity to over 30,000 kg/year by the end of 2019. The Company has an exclusive R&D partnership with the University of Guelph to develop advanced computer-controlled growing technology to improve yield.
- Market Cap: $309.1 Million
- Sortino Ratio – 156 Weeks: 0.67
- Sortino Ratio – 60 Months: 1.4
- YTD Total Return: 3.9%
Newstrike Resources Ltd. (TSXV:HIP) – $0.73
Cannabis
Newstrike Resources is a Canada-based company, growing 2,500 kg of cannabis annually in 7,600 square feet of growing space. The Company’s Brantford facility is designed to simulate natural conditions of sunlight, temperature, humidity and wind. The Company is currently retrofitting an existing greenhouse to increase capacity to 25,000 kg/year by 2019.
- Market Cap: $367.5 Million
- Sortino Ratio – 156 Weeks: 0.65
- Sortino Ratio – 60 Months: 0.5
- YTD Total Return: 30.4%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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