In the world of cannabis stocks, there have been few real winners of late. The sector, on both sides of the Canada-US border, faces a number of challenges. So where is the money in the sector going?
Last month, US News and World Report published a list of the “Best Marijuana Stocks To Buy For 2022.” The article noted that the Biden presidency, "has been a major disappointment for cannabis stock investors." The piece pointed out that this frustration stems from, "virtually no progress on federal marijuana reform or legalization."
That said, let’s take a look at how the top five stocks in the piece have fared so far this year. Be warned: Brace yourselves.
OrganiGram Holdings
OrganiGram Holdings (NASDAQ:OGI) (TSX:OGI) is a Canadian-based producer that serves both the medicinal and adult recreation markets.
On Feb. 18, the stock closed at US$1.53. At that time, Cantor Fitzgerald had an “overweight” rating on the stock and a US$4.18 price target.
Yesterday, OrganiGram shares closed at US$1.30, down about 3% on the day, and 9.7% since the beginning of March. And in the last year, they have lost almost 70% of their value.
Cresco Labs
Cresco Labs (OTC:CRLBF) (CSE:CL) is a US-based grower that operates in 10 states and owns more than 1,000 marijuana dispensary outlets.
On Feb. 18, the stock closed at US$7.44. Cantor Fitzgerald had an “overweight” rating on the stock and a US$19 price target at that time.
Yesterday, Cresco shares closed at US$5.54, flat on the day, and down about 15.3% since the beginning of March. In the last year, the stock has lost just over 58% of its value.
Curaleaf Holdings
Curaleaf Holdings (OTC:CURLF) (CSE:CURA) is another US-based multi-state cannabis grower, but with a much bigger geographical footprint than Cresco. It operates in 23 states. And with annual sales of about US$1.3 billion, it is ranked the second largest multi-state operated company in the US.
On Feb. 18, the stock closed at US$8.59. At that time, Cantor Fitzgerald had an “overweight” rating and a price target of US$16.50 on the stock.
Yesterday, Curaleaf shares closed at US$5.75, down 2.8% on the day, and down 9.87% since the beginning of March. In the last year, the stock has lost just shy of 63% of its value.
Green Thumb Industries
Green Thumb Industries (OTC:GTBIF) (CSE:GTII) is another US-based multi-state cannabis producer that operates in 14 of the country’s largest markets, with plans to expand.
On Feb. 18, the stock closed at US$21.27. And at that time Cantor Fitzgerald had an “overweight” rating on the stock and a price target of US$54.
Yesterday, Green Thumb closed at US$15.20, down 2.63% on the day, and down 15.5% since the beginning of March. In the last year, the stock has lost just over 54% of its value.
Trulieve Cannabis
Trulieve Cannabis Corp (OTC:TCNNF) (CSE:TRUL) is a Florida-based pot grower with 112 dispensaries and a major player in the state’s medical marijuana market. It also operates in other states, including Massachusetts, Pennsylvania, and Arizona.
On Feb. 18, the stock closed at US$23.72. And at that time Cantor Fitzgerald had an “overweight” rating and a price target of US$72.
Yesterday, Trulieve closed at US$17.24, down about 7% on the day, and just over 16% since the beginning of March. In the last year, the stock has lost more than 62% of its value.
Still wondering where the money in the sector is going? Look for the puff of smoke.