OGI - Cannabis companies don't have much to celebrate on 4/20 Day

2023-04-20 11:26:56 ET

While many marijuana enthusiasts will be toking up Thursday in honor of 4/20 Day (slang for consuming marijuana), US multi-state operators and Canadian cannabis licensed producers (LPs) might not be as happy.

That's because the stock prices for companies in both industries has been in the doldrums both year to date and over the last year.

The American Cannabis Operator Index , maintained by New Cannabis Ventures ( NCV ), is down ~11% year to date. For the one-year period, it is off ~65% .

NCV's Canadian Cannabis LP Index is also gloomy. It is roughly unchanged YTD, but down ~49% over the last year.

Although investing in multi-state operators or Canadian LPs hasn't been fruitful lately, Alan Brochstein, founder of New Cannabis Ventures, sees some diamonds in the rough. He is also a Seeking Alpha Investing Groups Leader running the 420 Investor service.

He has pegged Cronos Group ( NASDAQ: CRON ), Ascend Wellness ( OTCQX:AAWH ), Trulieve Cannabis ( OTCQX:TCNNF ), and Columbia Care ( OTCQX:CCHWF ) as strong buys.

The decline in stock prices for cannabis companies comes as adult-use, recreational marijuana is becoming legal in a growing number of states , prompting an increase in sales.

However, legislation that would likely help the industries, namely legalization on the federal level and allowing US cannabis businesses access to the US banking system , has stalled in Congress.

Among the major US MSO, Columbia Care ( OTCQX:CCHWF ) is the worst performer over the last year, down ~82% . The best performer, Green Thumb Industries ( OTCQX:GTBIF ), is off 57% .

Among major Canadian LPs, SNDL ( SNDL ) is the worst performer over the last year, down ~73% . The best performer is Cronos Group ( CRON ), off 39% .

For more coverage and analysis on investing in the cannabis industries, check out Cannabis Growth Investor , run by Investing Group Leader Julian Lin.

Also be sure to regularly listen to the Cannabis Investing Podcast, hosted by Seeking Alpha's Rena Sherbill. The newest episode, posted earlier Thursday, features Ayr Wellness ( OTCQX:AYRWF ) CEO David Goubert.

Here's some other recent analysis from Seeking Alpha contributors worth checking out:

Curaleaf Has Fallen Down And Can't Get Up , by Alan Brochstein

Green Thumb: As Cannabis Stocks Crash, Buy The Strongest in US Cannabis , by Cannabis Growth Investor

Tilray: A Cannabis Stock to Avoid , by Stone Fox Capital

Cronos Group: Better Than Those It Competes With , by Tangerine Capital.

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