420 Investor Weekly Review 07/22/22

Review

StatsCan released data that indicated Canadian sales of cannabis in May set a record of C$375.8 million, up a little sequentially and about 20% from a year ago.

I distributed this written material to 420 Investor subscribers during the week:

Here are some of this week's highlights for Focus List names:

  • CGC - closed the acquisition of C$263 million of its convertible notes.
  • CURLF - named Miles Horne as the new President of Curaleaf International.
  • GNLN - sold stake in VIBES for $5.3 million and repaid the loan to its former CEO.
  • TLLTF - introduced cannabis brand Toast in Massachusetts.
  • TLRY - launched a cannabis education platform in Europe.
  • TRSSF - launched Cookies Brand in New Jersey.
  • VFF - launched The Original Fraser Valley Weed Co. at Pure Sunfarms.
  • VLNS - announced the nomination of its sixth independent director.

There were comments in over 110 discussions in the Forum. Don't miss out on this most informative part of 420 Investor! Not familiar with the the Forum? This video will help! This is a great way to track your favorite tickers, even those not on the Focus List, and to get your questions answered quickly.

Please check the Focus List, (which has technical, fundamental and valuation ratings as well as a market-cap table). To help track market caps, we maintain tables for the Canadian LPs and the American cannabis operators and ancillary companies.

Market Performance

The Global Cannabis Stock Index rose strongly during the week, increasing 7.2% to 16.15:

The index, which lost 26% in 2021 following a 5.2% gain in 2020, is down 50.8% in 2022. It currently includes 26 stocks and ended 2021 at 32.85: In July, it has rallied 9.4%.

For perspective, the index, which began 2013 at 100, bottomed in August 2013 at 70 after a prior peak of 220 in February 2013 and peaked in 2014 at 1010. The long post-2014 decline ended in February 2016, with the market soaring at the beginning of 2018 to levels not seen since 2014. We took out the 2016 lows by a wide margin in early 2020 and then soared into 2021 before reversing. We recently made a new all-time low:

Model Portfolios

Flying High ended the week valued at $207,462 up 27.7% in July and 7.9% during the week. . This model portfolio was launched on 9/23/13 with $10,000 (paper), and it ended 2013 at $18,225, 2014 at $15,702, 2015 at $9608, 2016 at $49,568, 2017 at $112,891, 2018 at $161,346, 2019 at $165,249, 2020 at $252,409 and 2021 at $294,249. The year-to-date gain was 16.6% in 2021, and the model portfolio is down 24.0% in 2022. The model portfolio has increased 2138% since inception. Flying High has 9 positions and 0.5% cash. During the week, I had several trades.

420 Opportunity ended the week at $52.252, up 23.6% in July and 10.9% during the week. This model portfolio, which was funded with $50,000 (paper) on 4/8/14 and ended 2014 at $17,105, 2015 at $11,418, 2016 at $44,915, 2017 at $91,407, 2018 at $94,616, 2019 at $77,715, 2020 at $105,373 and 2021 at $90,823, has a goal of being fully invested and outperforming the market as measured by the 420 Investor Cannabis Stock Index, which gained 7.2% during the week. In 2021, the model lost 13.8%, while the index decreased 26.0%, and it is down 42.5% in 2022 compared to the index loss of 50.8%. The model portfolio has gained 4.5% since inception, while the overall market has declined by 98% during that time-frame. The model maintains 16 holdings and 0.2% cash. The three largest holdings include CEAD/CEADW (12.8%), AYRWF (10.5%) and MAPS (9.6%). During the week, I sold CCHWF, reduced some other stocks and added to existing positions and a new position in GNLN.

420 Quality, which was funded with $50,000 (paper) on 3/1/17, ended the week at $73,257, up 10.8% this week and 24.2% in July compared to the index's 9.4% gain in July and 7.2% gain during the week. . In 2021, the model portfolio lost 21.8% compared to the 26.0% loss in the index. In 2022, it has returned -42.0% compared to the index return of -50.8%. It ended 2017 at $109,480, 2018 at $119,053, 2019 at $113,123, 2020 at $161,504 and 2021 at $126,323. To learn more about the model portfolio, which is longer-term focused, please read the description I posted before launch. Since inception, the model has gained 46.5%, while the index has lost about 80%. The model has 17 holdings and 0.1% cash. The largest positions include CEAD/CEADW (11.9%), AYRWF (10.4%) and MAPS (9.5%). During the week, I sold CCHWF, reduced some other stocks and added to existing positions and a new position in GNLN.

Calendar

As a reminder, 420i posts a calendar for your convenience, as does New Cannabis Ventures. NCV also posts a separate calendar for conference calls.

  • Turning Point Brands reports its Q2 and hosts a call on Wednesday afternoon
  • Tilray Brands reports is Q4 and hosts a call on Thursday afternoon.

Companies with fiscal years ending in April (March for Canadian Venture stocks that don't file with the SEC) must report their annual financials in July.. This includes none from the Focus List. Companies with years ending in February, August and November must file their quarterly reports by mid-July (or by late July for Canadian-listed stocks that aren't on the TSX or NEO or filing with the SEC).

Posted to 420 Investor on Jul 22, 2022 — 4:07 PM
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