Should I Buy cannabis stocks?

Screening Filters

1. Market Cap ≥ $50,000,000

   • Purpose: Focus on cannabis companies of a minimum size, excluding the smallest and riskiest micro‑caps.
   • Rationale:
     • When you ask “Should I buy cannabis stocks?”, you’re generally thinking about investable, recognizable companies—not ultra‑tiny, illiquid penny stocks.
     • A $50M+ market cap filter helps avoid the most speculative names that can be extremely volatile, have limited disclosure, and are more prone to manipulation or sudden delisting.
     • This doesn’t make them “safe,” but it moves the universe toward somewhat more established cannabis businesses.

2. Monthly Average Dollar Volume ≥ $100,000

   • Purpose: Ensure the stocks trade enough dollar volume that you can realistically enter and exit positions.
   • Rationale:
     • Cannabis stocks can be very illiquid, especially on the smaller end. Illiquidity can trap investors in positions or cause huge price swings with small trades.
     • By requiring at least $100K traded per month on average, the screener filters out the thinnest, hardest‑to‑trade stocks.
     • This better aligns with a practical investor’s question of “Should I buy?” by focusing on names you can actually buy and sell without extreme slippage.

3. Theme: “The Cannabis Industry”

   • Purpose: Directly target stocks whose primary business is in or clearly tied to the cannabis sector.
   • Rationale:
     • Your question is specifically about cannabis stocks, not just any high‑risk or “sin” stocks.
     • This theme filter narrows the universe to companies identified as operating in (or closely connected to) cultivation, processing, distribution, medical/recreational cannabis products, or ancillary services to the cannabis industry.
     • It removes unrelated sectors so your analysis is actually about cannabis industry dynamics—regulation, legalization trends, pricing, and sector‑specific risks.

4. Exchange: XNYS (NYSE) and XNAS (NASDAQ)

   • Purpose: Limit the results to cannabis stocks listed on major U.S. exchanges.
   • Rationale:
     • NYSE and NASDAQ listings usually imply stricter listing standards around financial reporting, governance, and minimum size/liquidity than OTC or foreign exchanges.
     • Many cannabis names trade OTC or on Canadian exchanges; those can be riskier and less transparent. By focusing on NYSE/NASDAQ, the screener emphasizes relatively higher‑quality, more regulated listings.
     • This helps align with an investor who is considering “Should I buy cannabis stocks?” from a more mainstream, long‑term investing perspective rather than purely speculative trading.

Why Results Match Your Question

• The cannabis theme filter ensures all stocks are actually in the cannabis industry, directly addressing the sector you’re asking about.
• The market cap and dollar volume filters focus on more established and tradable names, making the output relevant for a realistic investment decision, not just illiquid penny stocks.
• The NYSE/NASDAQ exchange filter narrows the list to cannabis companies that meet higher listing standards, which is more appropriate when you’re evaluating whether buying into this sector fits your risk tolerance and investment goals.

Together, these filters produce a set of cannabis stocks that are more investable, somewhat more vetted, and suitable for further fundamental and risk analysis to answer your underlying question: whether they make sense for you to buy.