The Canadian cannabis stocks on our list have high stock price volatility, which makes for attractive trading opportunities
SmallCapPower | February 19, 2019: One measure of a stock’s volatility is called beta, which is defined as the covariance of the stock and the market (typically an index such as TSX Composite) divided by the variance of the market. The Canadian cannabis stocks we’ve dug up today have had an average one-year beta 3.1, indicating they are likely to have strong price movements in the future. For reference, the closer a stock’s beta is to 1, the closer it follows market movements. For instance, a stock with a beta of 0.5 would move 50% less than the market, while a stock with a beta of 2 would move 100% more than the market. A stock with a negative beta would move in opposite to the market. Cannabis stocks, in general, have been highly volatile, as it is an up-and-coming industry mostly traded by retail investors.
*Share prices as at close February 14, 2019, data obtained from S&P Capital IQ
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Beleave Inc. (CSE:BE) – $0.11
Cannabis
Beleave is a Canada-based biotech company that focuses on the production of medicinal marijuana. The Company works toward the development of patented research and the research of cannabis-based therapies, such as smoke harm reduction products, portable & stationary vaporizers, and accessories. Beleave is in Phase 2 of its Hamilton Facility Expansion, planning to build an 80,000 sq. ft. hybrid greenhouse extension to its existing building. On January 31, the Company’s wholly-owed subsidiary, Beleave Kannabis Corporation, was given an ISO 9001:2015 (a quality management system standard) certification for its research, development and production cannabis products for recreational and medical purposes.
- Market Cap: $48.1 Million
- 5-Day Total Return: -4.3%
- 30-Day Total Return: -15.4%
- 1-Year Beta: 3.63
THC Biomed Intl Ltd. (CSE:THC) – $0.42
Cannabis
THC Biomed is an ACMPR licensed producer and the largest supplier of legal cannabis genetics in Canada. The Company works with leading edge scientific research and focuses on the development of services and products related to the medical cannabis industry. On November 8, 2018, the Company received a Cannabis Act and Cannabis Regulations License from Health Canada, allowing THC Biomed to grow, produce and sell cannabis products on a large scale.
- Market Cap: $43.8 Million
- 5-Day Total Return: -7.7%
- 30-Day Total Return: -14.3%
- 1-Year Beta: 3.34
Nutritional High International Inc. (CSE:EAT) – $0.28
Cannabis products
Nutritional High International engages in the developing, manufacturing, and distributing of cannabis extracts and edible products for medical and recreational use. The Company works with licensed facilities in legalized jurisdictions. The Company brought its flagship FLÏ™ edibles and extracts product line from production to market through its wholly-owned subsidiaries. On January 29, the Company entered into a letter of intent to buy a 51% interest in cannabis-infused edibles producer, SolDaze.
- Market Cap: $88.0 Million
- 5-Day Total Return: -1.7%
- 30-Day Total Return: 0.0%
- 1-Year Beta: 3.09
Disclosure: Neither the author nor his family own shares in any of the companies mentioned above.
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