Be Careful With Canadian LPs

You’re reading this week’s edition of the New Cannabis Ventures weekly newsletter, which we have been publishing since October 2015. The newsletter includes unique insight to help our readers stay ahead of the curve as well as links to the week’s most important news. We no longer send these by email as we did in the past, but we post this and all of the newsletters on our website here.

Friends,

Canadian LP stocks have been quite strong this year. I will provide an update on Friday regarding the action in November, but the NCV Canadian Cannabis LP Index ended today at 59.32, which leaves the 13-stock index up 18.4% in 2025. Some readers may attribute the rally to Village Farms, but Village Farms is not in the index due to it being listed only on the NASDAQ. Village Farms is in the NCV Global Cannabis Stock Index, which is down 11.1% year-to-date. It is also in MSOS, which is down 10.0% in 2025 so far.

I have written very optimistically about some of the Canadian LPs in the past few years and very negatively about some of the others.  Within the past eighteen months, the newsletter articles that have been about Canadian LPs include:

It has been a bit more than three months since the Canadian LPs were the focus of this newsletter, and I want to provide an update today as we head into year-end with these stocks outpacing the cannabis sector. At 420 Investor, I include 5 Canadian LPs on my 19-stock Focus List, including Canopy Growth, Cronos Group, Organigram, Tilray Brands and Village Farms. These are all in the Global Cannabis Stock Index, as are Aurora Cannabis and SNDL too. Here is how they have performed since 8/8, the day before the news hit about potential rescheduling in the U.S.:

Here are my current thoughts for each:

I do write a lot at Seeking Alpha about the Canadian LPs, and you can always look at my articles there for more detail.  This past weekend, I boosted my rating on Organigram from Hold to Buy and reduced my rating on Village Farms from Sell to Strong Sell. Last week, I upgraded Canopy Growth from Strong Sell to Hold after having been very negative for quite a long time. In late September, I downgraded Tilray Brands to Strong Sell. That one rallied sharply on their Q1 report a few days later, but has crashed. In mid-September, I initiated coverage on SNDL with a Sell. At 420 Investor, I include 5 Canadian LPs on my Focus List, including Canopy Growth, Cronos Group, Organigram, Tilray Brands and Village Farms.

Canadian LPs are doing better than many other sectors. I have written positively about the cannabis REITs, and they look like a better bet to me. I think that investors need to be careful with the Canadian LPs, as they are no longer as cheap as they used to be and have been boosted by the enthusiasm for MSOs since the potential rescheduling was announced in August, though rescheduling will not impact them. I do hope for improvements in Canada’s taxation, distribution and regulation, as these changes could help the LPs. Until then, I suggest caution.

I wish everyone a Happy Thanksgiving!

Sincerely,

Alan

New Cannabis Ventures publishes curated articles as well as exclusive news. Here is what we published this past week:

Exclusives

Canadian Cannabis Sales Slipped in September from Record Level

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