The Canadian cannabis stocks we’ve dug up have been largely oversold over the past two weeks, providing a cheaper entry into the space
SmallCapPower | July 26, 2018: Relative Strength Index (RSI) is a measure of price momentum. High values above 70 indicate that a stock may be overbought, while low values below 30 indicate it may be oversold. Over the last month, many cannabis stocks have seen a consistent decline in their prices on increasing volumes. The Horizons Marijuana ETF has declined by 15.4% in the past 30 days, suggesting a sector-wide correction. During the past two weeks, the Canadian cannabis stocks on our list have posted an average RSI of 14.5, providing investors with a potentially cheaper entry into the industry or a possible swing trade on the rebound.
For Our Complete Coverage Of Canadian Marijuana Stocks Click Here
Watch: Cannex Capital Holdings (CSE:CNNX) Wants to Emerge as a Multi-State U.S. Player, Says CEO
Sunniva Inc. (CSE:SNN) (OTCQX:SNNVF) – $6.05
Cannabis
Sunniva is a Canada-based cannabis producer. The Company is vertically integrated with operations divided between production, clinics, and paraphernalia. SNN presently has more than 100,000 patients registered in its clinics and recently entered a deal with Canopy Growth Corp to supply 45,000 kg/annum for two years to Canopy’s distribution network. Sunniva is currently expanding its existing facility and constructing a second that it hopes will yield a combined 200,000 kg/annum by 2020.
- Market Cap: $199.9 Million
- RSI Simple – 14 Days: 7.1
- RSI Simple – 30 Days: 20.3
- 1 Month Total Return: -24%
- YTD Total Return: -32%
RavenQuest BioMed Inc. (CSE:RQB) (OTCQB:RVVQF) – $0.47
Cannabis
RavenQuest BioMed is a Canada-based diversified cannabis company with divisions focused on cannabis production, management services and consulting and specialized research & development. The Company offers integrated solutions to companies in the cannabis industry such as growing and drying technologies, patient and genetic management systems, and security management solutions. The investment division of RavenQuest has been purchasing and expanding cannabis production facilities with an anticipated total capacity of 50,000 kg/annum.
- Market Cap: $43.9 Million
- RSI Simple – 14 Days: 12.9
- RSI Simple – 30 Days: 24.2
- 1 Month Total Return: -42%
- YTD Total Return: -70%
Aurora Cannabis Inc. (TSX:ACB) (OTCQB:ACBFF) – $7.11
Cannabis
Aurora Cannabis is a licensed producer and distributor of medical cannabis. ACB expects to have just under 1,000,000 sq. ft. of licensed production space and plans to produce at least 270,000 kilograms of cannabis annually. The Company also has 20% ownership interest in Liquor Stores N.A., the dominant alcohol retail chain in Western Canada. It intends to convert several existing outlets, as well as develop new stores, for the sale of cannabis to the recreational market. Additionally, the Company has signed a supplier agreement with the Province of Québec to supply cannabis for the province’s adult consumer market. Aurora has also embarked on an aggressive international expansion strategy that aims to have operations and/or sales in Germany, Denmark, Italy and Australia. On May 14, 2018, the Company announced the acquisition of MedReleaf (TSX:LEAF) for $3.2B in stock. On June 20, 2018, the Company announced its plan to spin-off its U.S. assets into a new company, Australis Capital.
- Market Cap: $4,029.6 Million
- RSI Simple – 14 Days: 13.4
- RSI Simple – 30 Days: 36.8
- 1 Month Total Return: -29%
- YTD Total Return: -26%
Cannex Capital Holdings Inc. (CSE:CNNX) (OTCQB:CNXXF) – $0.86
Cannabis
Cannex Capital Holdings is a Canada-based company with cannabis operations in Washington and California. Cannex is focused on premium indoor cultivation, extraction, manufacturing and branding of edible and derivative products, as well as retail operations. The Company’s subsidiary, BrightLeaf Development LLC, is the largest producer/processor in Washington State. Cannex is also in the process of acquiring Jetty Extracts, one of the largest processors and extractors in California. Cannex plans to produce from two indoor cultivating facilities with a combined 30,000 sq. ft. and 19,000 kg/year capacity, equating to one of the highest yields in the industry at 633 grams/sq. ft.
- Market Cap: $76.9 Million
- RSI Simple – 14 Days: 18.2
- RSI Simple – 30 Days: 33.9
- 1 Month Total Return: -15%
- YTD Total Return: 139%
Harvest One Cannabis Inc. (TSXV:HVT) – $0.71
Cannabis
Harvest One Cannabis is a producer of medical marijuana licensed under the ACMPR. The Company’s production subsidiary currently produces 1,000 kg/y at its BC facility, and plans add a further 10,000 kg/y at two new facilities in BC and Saskatchewan. Satipharm, its distribution subsidiary, produces cannabis-based microgel capsules, primarily for distribution in Europe.
- Market Cap: $121.5 Million
- RSI Simple – 14 Days: 21.1
- RSI Simple – 30 Days: 37.5
- 1 Month Total Return: -8%
- YTD Total Return: -45%
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