While disappointing performances by high-profile cannabis stocks have made headlines of late, the news is not all bad, especially if you select the right ruler with which to measure investor benefits.
The TMX Group created just such a ruler. It’s called the TSX30. Unveiled last week, it is the inaugural list of the top-performing stocks over the past three years on the Toronto Stock Exchange, home to many of the cannabis stocks. And weed stocks figured prominently.
At the top of the list is Canopy Growth (NYSE:CGC), (TSX:WEED). Shares of the largest cannabis company in the world appreciated by 1,823% during the last three years, ending June 30. The return was so impressive that it was more than double the second-placed performer on the list, e-commerce company Shopify (NYSE:SHOP), (TSX:SHOP), which offered a 883% return in the same period.
In all, there were four cannabis companies that made it onto the list, all of them in the top 10.
Holding down the No. 3 spot on the list is Village Farms International (NASDAQ:VFF), (TSX:VFF). It generated an 868% return in the last three years. Headquartered in both British Columbia and Florida, this company also trades on the NASDAQ.
Village Farms International operates vegetable-growing facilities in the U.S., Canada and Mexico, as well cannabis operations in British Columbia, with plans to expand into the U.S. hemp-derived CBD market. It currently has two joint ventures—Village Fields Hemp and Arkansas Valley Green and Gold Hemp, which produces outdoor grown hemp for CBD extraction.
Holding down the No. 6 position on the TSX30 list is Ontario-based Aphria (NYSE:APHA), (TSX:APHA), which offered investors a 479% growth rate. Not bad for the medical marijuana company based in Leamington, which earlier this month announced a “verification pilot program.” The aim of the program is to help researchers match therapeutic outcomes to specific genetic and chemical profiles, and help doctors and pharmacists prescribe the best cannabis-based products.
Quebec’s Neptune Wellness Solutions (NASDAQ:NEPT), (TSX:NEPT) ranked at No. 8 on the TSX30 list, accumulating three-year returns of 322%. The company specializes in the extraction and purification of cannabis-based oils for wellness supplements for humans and pets.
For a full list of the TSX30, click here.
Little Canadian Cannabis Firm Signs Big Deal In China
A small Canadian cannabis company signed a huge deal with China last week, and its stock price took a 32% bump.
Shares of Pure Global Cannabis (OTC:PRCNF), (TSXV:PURE) , based in Brampton, Ont., went from US$0.075 (C$0.095) to hit US$0.115 (C$0.145). It closed yesterday at US$0.110 (C$0.135). But more significantly, the company is the first Canadian medicinal marijuana and hemp grower to enter into an agreement with a Chinese-based firm.
According to the deal with hemp firm KMT-Hansa Corp, Pure Global, through its subsidiary PireSinse Inc., will grow hemp in 17,000 acres in Yunnan province, and then process and export CDB-based products. KMT-Hansa, based in Anguilla, recently received a licence to grow, extract and export hemp in Yunnan province. The Canadian firm will manage the growing and extraction operation, and both companies plan to export their CBD products throughout Asia.
Arthritis Foundation Issues CBD Statement
The U.S.-based Arthritis Foundation issued its first list of recommendations for CBD earlier this month, providing information to millions of arthritis patients about what to look for when selecting a CBD-based product.
CBD, or cannabidiol—the non-psychoactive extract of the cannabis plant—is growing in popularity for a wide range of medical conditions.
The Arthritis Foundation did not recommend using the oil to treat arthritis symptoms, but recognizes that many who suffer from inflammation of the joints have been turning to CBD for pain relief.
Foundation officials told its members that there are “no serious safety concerns” associated with moderate use of CBD, but warned it could interact with commonly prescribed arthritis medication.