TLRY - Cannabis Companies' Gains - U.S. Versus Canada: Averages Can Be Deceiving Irrational Market Behavior To Blame? | Benzinga
Recent insights from Viridian Capital Advisors shed light on the bewildering trends in cannabis stocks. Year-to-date (YTD) data indicates that U.S. multi-state operators (MSOs) and Canadian licensed producers (LPs) have experienced drastically different fates.
At a glance, U.S. MSOs show an average return of 26.4%, towering over Canadian LPs' modest 1.3%.
However, this picture is deceiving.
If we remove the outliers—Trulieve Cannabis (OTC: TCNNF), which saw significant gains, and Tilray Brands (NASDAQ: TLRY), which experienced sharp declines—the true performance is closer: MSOs at 16.79% and LPs at 25.97%.
Market Irrationality
According to Viridian, these fluctuations suggest an irrational market behavior. Before 4/20 a few Canadian stocks rose by more than 50% YTD. The volatility reflects not just company performance but broader economic factors like regulatory changes and market speculation.