Illinois medical cannabis sales for July were released and left overall sales for the state up 6% from a year ago and just 1.6% sequentially from June. Michigan adult-use flower sales boomed, leaving July sales at a record $210 million, up 12% sequentially.
I distributed this written material to 420 Investor subscribers during the week:
Here are some of this week's highlights for Focus List names:
There were comments in over 140 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.
The Global Cannabis Stock Index rallied but trailed the broad market strength, increasing 1.9% to 15.56, still up from the all-time low close of 14.76 set 6/30:
The index, which lost 26% in 2021 following a 5.2% gain in 2020, is down 52.6% in 2022. It currently includes 26 stocks and ended 2021 at 32.85. In August, it has rallied 1.0%:
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:
Flying High , up 21.7% in July , ended the week valued at $228,864, up 7.0% during the week and now up 7.3% in August. 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 22.2% in 2022. The model portfolio has increased 2189% since inception. Flying High has 8 positions and 0.1% cash. During the week, I exited a Canadian LP and added to an ancillary name and created a position in a different LP. I also trimmed another LP and added to an ancillary name, the new LP and an existing MSO position. Finally, I trimmed two LPs and added a new position in an MSO.
420 Opportunity, which rose 19.3% in July, ended the week at $53,012, up 5.0% (and +5.1% in August) 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 1.9% during the week. In 2021, the model lost 13.8%, while the index decreased 26.0%, and it is down 41.6% in 2022 compared to the index loss of 52.6%. The model portfolio has gained 6.0% since inception, while the overall market has declined by 98% during that time-frame. The model maintains 18 holdings and 0.1% cash. The three largest holdings include CEAD/CEADW (9.9%), OGI (9.2%) and AYRWF (8.8%). During the week, I trimmed CGC and ACB and added a new position in LOWLF. I trimmed GRWG and added to IIPR. I trimmed VLNS and added a new position in CRON. I trimmed ACB further and added to MAPS. I trimmed GRWG again. I also sold the balance of VLNS and added a new position in TRSSF.
420 Quality, which was funded with $50,000 (paper) on 3/1/17 and was up 20.4% in July, ended the week at $74,468, up 4.7% this week (and 4.9% in August). In 2021, the model portfolio lost 21.8% compared to the 26.0% loss in the index. In 2022, it has returned -41.1% compared to the index return of -52.6%. 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 48.9%, while the index has lost about 81%. The model has 19 holdings and no cash. The largest positions include OGI (10.0%), CEAD/CEADW (9.2%) and HYFM (9.1%). During the week, I trimmed CGC and ACB and added a new position in LOWLF. I trimmed GRWG and added to IIPR. I trimmed VLNS and added a new position in CRON. I trimmed ACB further and added to MAPS. I trimmed GRWG again and sold the balance of VLNS, adding to TRSSF and to SMG.
Companies with fiscal years ending in May (April for Canadian Venture stocks that don't file with the SEC) must report their annual financials in August. This includes none from the Focus List since Tilray already filed. Companies with years ending in March, September and December must file their quarterly reports by mid-August (or by late August for Canadian-listed stocks that aren't on the TSX or NEO or filing with the SEC).