The Canadian marijuana stocks on our list have high betas and leverage the cannabis sector
SmallCapPower | February 16, 2018: Beta is a measure of the volatility of a stock. 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. Marijuana stocks have been highly volatile, as components of the Horizons Marijuana Index generate an average beta of 2.0. The Canadian marijuana stocks on our list today have had an average beta of 4.3, indicating they are likely to have strong movements within the sector.
Newstrike Resources Ltd. (TSXV:HIP) – $1.08
Cannabis
Newstrike Resources is a Canada-based licensed producer of marijuana. The Company produces 2,500kg of cannabis yearly, and plans to expand production to reach 24,500kg/year. The Company was recently paid $9.5M via break fee after its prospective acquisition with CanniMed Therapeutics (TSX:CMED) failed.
- Market Cap: $433.3 Million
- Daily Beta – 180 Day: 5.7
- 1 Month Total Return: -35.7%
- 3 Month Total Return: 86.2%
THC Biomed Intl Ltd. (CSE:THC) – $1.43
Cannabis
THC Biomed is a Canada-based marijuana company. The Company’s Clone Shipper packaging allows it to ship live plants. The Company plans to purchase a greenhouse in Ontario to increase its grow capacity to 100,000 sq. ft.
- Market Cap: $162.4 Million
- Daily Beta – 180 Day: 4.4
- 1 Month Total Return: -23.9%
- 3 Month Total Return: 58.9%
Hiku Brands Company Ltd. (CSE:HIKU) – $2.80
Cannabis
Hiku Brands is a Canada-based licensed producer of medical marijuana. The Company was recently formed from the merger of DOJA Cannabis Company and Tokyo Smoke. Hiku plans to open a 5,000kg production facility and open seven retail positions across Canada. On February 1, the Company acquired Maitri for $1.8M.
- Market Cap: $364.2 Million
- Daily Beta – 180 Day: 4.1
- 1 Month Total Return: -15.2%
- 3 Month Total Return: 188.7%
CannTrust Holdings Inc. (CSE:TRST) – $8.91
Cannabis
CannTrust is a Canada-based licensed producer of medical cannabis. The Company’s products are sold online and delivered to registered patients. CannTrust’s original 50,000 square foot production facility located in Vaughan, Ontario uses hydroponic technology to produce at an annual capacity of 3,600 KG. Furthermore, CannTrust has set aside a 46-acre property, where it plans to add capacity with a 430,000-square foot expansion.
- Market Cap: $810.5 Million
- Daily Beta – 180 Day: 4.0
- 1 Month Total Return: -8.1%
- 3 Month Total Return: 37.3%
Disclosure: Neither the author nor his/her family own shares in any of the companies mentioned above.
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