The Canadian cannabis stocks we’ve weeded out have outperformed the HMMJ ETF over the past month
SmallCapPower | October 29, 2018: Today we have identified three Canadian cannabis stocks that have positive one-month returns, which have, by far, outperformed the Horizons Marijuana Life Sciences Index ETF (HMMJ). Over the past month, the cannabis industry has mirrored the major indices, with several of the big players falling double digits. The HMMJ ETF, seen as a proxy for the cannabis industry, fell more than 20% over the past month. To illustrate, Canopy Growth Corp. (TSX:WEED), the largest cannabis company listed on a Canadian exchange, dropped nearly 27% over the same period. Share prices and market cap values are as of the closing price on October 24, 2018.
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MedMen Enterprises Inc. (CSE:MMEN) – $6.75
Cannabis
MedMen Enterprises is a vertically-integrated cannabis company focused in the U.S. market. The Company has 18 facilities that manufactures and distribute their cannabis product in California, Nevada and New York. On June 6, the Company completed an acquisition of Treadwell Simpson Partnership and its affiliate. Through this transaction MedMen gained Treadwell Nursery’s cultivation facility in Florida and has the license to open 25 additional medical dispensaries in Florida. On October 19, MedMen announced its intent to acquire PharmaCann for US$682 million, which drove the recent upswing in the stock. Once closed, the acquisition effectively positions MedMen in 12 states, including New York, Illinois, and Pennsylvania.
- Market Cap: $3.0 Billion
- 1 Month Returns: +26.4%
TerrAscend Corp. (CSE:TER) – $7.50
Cannabis
TerrAscend is a company that serves the medical cannabis market through its subsidiaries. These include Solace Health, a licensed producer of medical cannabis, TerraHealth Network, a clinical support and educational platform, and SolaceRx, delivering innovative and specialized pharmaceutical products for healthcare professionals with the goal of addressing unmet medical needs. On August 24, 2018, the Company announced that Solace Heath had entered into an agreement with Nova Scotia Liquor Corporation to supply the province of Nova Scotia with cannabis products for use in the recreational market. More recently, the Company secured a multi-year supply agreement with PharmHouse Inc. Under the terms of the agreement, PharmHouse’s 1.3 million sq. ft. greenhouse in Leamington, ON will supply TerrAscend with cannabis flower.
- Market Cap: $718.4 Million
- 1 Month Returns: +16.3%
Tilray Inc. (NASDAQ:TLRY) – US$109.29
Cannabis
Tilray is a company focused on medical cannabis research, cultivation, and distribution. The Company operates internationally through its subsidiaries in Australia, Canada, and Germany. Tilray’s stock price climbed after it announced on September 13 that it had obtained regulatory approval to export flower-based products to Germany. This supplements the oil-based products Tilray already exports to Germany. The stock has risen amidst significant short-selling pressure from notable research firms, including Citron Research.
- Market Cap: US$10.2 Billion
- 1 Month Returns: +1.3%
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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