Newstrike Brands Ltd NWKRF

Canadian LP Return.....

[Panthere3]

Friends, 

It's been an exciting month for cannabis stocks, especially the Canadian Licensed Producers, which bounced back sharply from a massive sell-off following the mid-October legalization. We wrote Friday about the 36% increase in the Canadian Cannabis LP Index, which is professionally managed by New Cannabis Ventures, detailing the performance across the three tiers of the market, with the nine companies in Tier 1 and Tier 2, those companies with quarterly sales in excess of C$10 million and C$2.5 million, respectively, significantly outperforming the 36 companies in Tier 3 with quarterly sales of less than C$2.5 million.

Every single Tier 1 and Tier 2 company returned more than the index return of 36% during January, with the exception of Newstrike Brands, which matched it:

Interestingly, Tier 2 outperformed Tier 1, meaning that the companies with quarterly sales between less than C$10 million but above C$2.5 million did better on average than those companies generating C$10 million or more of quarterly revenue. Tier 1 included Aphria, Aurora Cannabis, CannTrust and Canopy Growth, while Tier 2 included Cronos Group, HEXO Corp, Newstrike Brands, Organigram and Supreme Cannabis. For this month, Organigram graduated to Tier 1 following its disclosure of FY19-Q1 sales of C$12.4 million. The company expects that Q2 sales will increase at least 100% compared to Q1.