In the world of cannabis stocks, there have been few real winners lately. The sector, on both sides of the Canada-US border, faces several challenges. Where is the sector’s money going?
Last month, US News and World Report released a list of “the best marijuana stocks to buy for 2022.” The article notes that the Biden presidency “has been a big disappointment for cannabis stock investors.” The article pointed out that this frustration stems from “virtually no progress on reform or federal legalization of marijuana.”
That said, let’s take a look at how the top five stocks in the coin have fared so far this year. Warning: be prepared.
OrganiGram Holdings
OrganiGram Holdings (NASDAQ:) (TSX:) is a Canadian producer serving both the medicinal and adult recreational markets.
On February 18, the stock closed at US$1.53. At that time, Cantor Fitzgerald had an “overweight” rating on the stock and a price target of US$4.18.
Yesterday, shares of OrganiGram closed at US$1.30, down about 3% on the day and 9.7% since early March. And over the past year, they’ve lost almost 70% of their value.
Cresco Laboratories
Cresco Labs (OTC:) (CSE:) is an American producer that operates in 10 states and has more than 1,000 marijuana dispensaries.
On February 18, the stock closed at US$7.44. Cantor Fitzgerald had an “overweight” rating on the stock and a price target of US$19 at the time.
Yesterday, Cresco stock closed at US$5.54, flat on the day and down about 15.3% since early March. Over the past year, the stock has lost just over 58% of its value.
Curafeuille Holdings
Curaleaf Holdings (OTC:) (CSE:) is another US-based multi-state cannabis producer, but with a much larger geographic footprint than Cresco. It operates in 23 states. And with annual sales of around US$1.3 billion, it ranks second among multi-state companies in the United States.
On February 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 for the stock.
Yesterday, shares of Curaleaf closed at US$5.75, down 2.8% on the day and down 9.87% since early March. Over the past year, the stock has lost just under 63% of its value.
Green Thumb Industries
Green Thumb Industries (OTC:) (CSE:) is another US-based multi-state cannabis producer that operates in 14 of the nation’s largest markets, with plans to expand.
On February 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 early March. Over the past year, the stock has lost just over 54% of its value.
Trulieve Cannabis
Trulieve Cannabis Corp (OTC:) (CSE:) is a Florida-based pot producer 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 February 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 early March. Over the past year, the stock has lost more than 62% of its value.
Still wondering where the industry‘s money is going? Look for the puff of smoke.
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