Cannabis Stocks Under $2: Why Are These Small-Cap Shares Up While Broader Sector Is In The Red?
Portfolio Pulse from Nicolás Jose Rodriguez
Four small-cap cannabis stocks—Medical Marijuana Inc., TILT Holdings, Trees Corp., and Village Farms International—showed positive performance despite the broader sector's downtrend. These stocks present potential investment opportunities due to their operational efficiencies and financial metrics. In contrast, larger cannabis companies like Curaleaf Holdings, AdvisorShares Pure US Cannabis ETF, Canopy Growth, Trulieve Cannabis, and Green Thumb Industries experienced declines, with only Aurora Cannabis showing a slight increase.
May 20, 2024 | 8:44 pm
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POSITIVE IMPACT
Aurora Cannabis (ACB) was the only larger cannabis stock to show a gain, up 1.76%, indicating some resilience.
ACB's gain suggests it may have some resilience compared to other larger cannabis stocks, making it a potential short-term investment.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
POSITIVE IMPACT
Trees Corp. (CANN) experienced an 11.1111% gain. Despite a net income loss of $7.082 million, the company maintains a gross profit margin of 25.76% and reported Q1 2024 revenue of $3.686 million.
CANN's significant gain and operational efficiency make it a strong candidate for investors looking for growth in the cannabis sector.
CONFIDENCE 90
IMPORTANCE 75
RELEVANCE 100
POSITIVE IMPACT
Medical Marijuana Inc. (MJNA) showed a 4.7619% gain despite financial challenges, including a net income loss of $280.475 million. The company has a strong gross profit margin of 79.95%, indicating operational efficiency.
MJNA's strong gross profit margin suggests effective cost management, which could attract investors despite its financial losses.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
POSITIVE IMPACT
TILT Holdings (TLLTF) saw a 1.4493% increase. Despite a net income loss of $62.384 million, the company reported revenue of $165.956 million and a gross profit margin of 9.54%.
TLLTF's revenue and gross profit margin indicate potential for recovery, making it an attractive option for investors.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 100
POSITIVE IMPACT
Village Farms International (VFF) saw a 1.4286% increase. The company holds total assets of $458.439 million and reported revenue of $299.024 million, with a gross profit margin of 19.87%.
VFF's asset base and revenue indicate resilience, making it a potential recovery play in the cannabis sector.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Canopy Growth (CGC) saw a 3.46% decline, indicating sector-wide challenges.
CGC's decline is in line with the broader sector's performance, suggesting ongoing challenges.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Curaleaf Holdings (CURLF) saw an 8.64% decline, reflecting broader sector challenges.
CURLF's decline is indicative of broader sector challenges, which may deter short-term investors.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 50
NEGATIVE IMPACT
Green Thumb Industries (GTBIF) saw a 4.08% decline, consistent with the sector's downtrend.
GTBIF's decline aligns with the overall negative sentiment in the cannabis sector, affecting its short-term performance.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
AdvisorShares Pure US Cannabis ETF (MSOS) declined by 5.47%, mirroring the sector's downtrend.
MSOS's decline reflects the overall negative sentiment in the cannabis sector, impacting its short-term performance.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Trulieve Cannabis (TCNNF) experienced a 6.01% decline, reflecting broader sector difficulties.
TCNNF's decline is indicative of the broader sector's struggles, impacting its short-term outlook.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 50