Marijuana stocks

Screening Filters

1. Theme: "The Cannabis Industry"

   • Purpose: Restrict results to companies directly involved in marijuana/cannabis-related businesses.
   • Rationale: The user asked for “marijuana stocks,” which is an industry/theme-based request. Using the cannabis industry theme ensures we surface companies whose primary business is cultivation, distribution, biotech related to cannabis, ancillary services (like equipment or packaging), or other clearly cannabis-linked activities.

2. Region: US & Canada

   • Purpose: Limit results to North American cannabis companies.
   • Rationale: The legal and public markets for cannabis are most developed and accessible to many investors in the US and Canada. Most well-known marijuana stocks are listed in these markets, and this choice keeps the universe relevant and relatively higher quality versus small, illiquid markets elsewhere.

3. Exchanges: XNYS, XNAS, XASE (NYSE, NASDAQ, NYSE American)

   • Purpose: Focus on companies listed on major US exchanges.
   • Rationale: Major exchanges impose listing and reporting standards, which generally leads to better transparency, governance, and liquidity. Many cannabis names also trade OTC, but those can be riskier and less liquid. Limiting to these exchanges targets more established marijuana-related stocks that are easier to trade and research.

4. Market Cap ≥ $200,000,000

   • Purpose: Filter out the very smallest, highly speculative microcaps.
   • Rationale: The cannabis space is full of tiny, extremely volatile penny stocks. A minimum market cap of $200M focuses on relatively larger, more established players with at least some scale. This reduces the likelihood of including shell companies or very early-stage, thinly-traded names that might not be suitable for many investors.

5. Monthly Average Dollar Volume ≥ $300,000

   • Purpose: Ensure that stocks have sufficient trading activity (liquidity).
   • Rationale: Cannabis stocks can be illiquid. Requiring a minimum dollar volume helps ensure you can realistically get in and out of positions without excessive slippage. It filters out obscure names that barely trade, making the list more practical for actual investing or trading.

6. Price ≥ $1

   • Purpose: Exclude very low-priced penny stocks.
   • Rationale: Stocks under $1 are often at risk of delisting, reverse splits, and extreme volatility. In the cannabis sector, many such names exist. By requiring a price above $1, the screener emphasizes relatively more stable and established marijuana stocks rather than speculative penny plays.

7. Is Optionable = True

   • Purpose: Include only cannabis stocks that have listed options.
   • Rationale: Option availability typically correlates with higher liquidity and investor interest. It also caters to users who may want to use options strategies (hedging, covered calls, etc.) on marijuana stocks. Restricting to optionable names further concentrates the list on better-followed, more liquid companies.

Why Results Match:

• The cannabis industry theme directly aligns with “marijuana stocks,” ensuring the companies are marijuana-related by business focus.
• Region and exchange filters target the main public markets where marijuana stocks are widely traded and researched, improving quality and accessibility.
• Market cap, volume, and price thresholds reduce extremely speculative, illiquid penny stocks that are common in this sector, focusing on more tradable and established names.
• The optionable requirement further narrows the universe to actively traded cannabis stocks suitable for both stock and options investors.