Alpha-Centric ESG Research

Kyle Rudden

In <a href="https://www.smartkarma.com/insights/cannabis-stocks-esg-considerations-for-a-budding-industry" target="_blank" data-smartkarma-citation="insights:56947" rel="noopener">Cannabis Stocks: ESG Considerations for a Budding Industry</a>, I addressed ESG considerations related to the legal cannabis industry. The cannabis industry is an emergent subject of debate in ESG circles, and a real conundrum from an ESG perspective. That Insight covered two aspects:<ol>
<li>
Classification: Whether cannabis stocks should be considered "sin stocks" (along with alcohol, gambling, adult entertainment, and tobacco). This is the crux of most discussions to date, and primarily affects exclusionary screening typical of socially-responsible investing (SRI).</li>
<li>
ESG Concerns: Regardless of classification, the cannabis industry presents a multitude of ESG concerns relevant to general ESG investing. Environmental concerns dominate, and are mostly negative. Social and Governance issues are more balanced, and more company-specific.</li>
</ol>This Insight takes that conversation a step further, assessing the current cadre of cannabis-related stocks and identifying the most ESG-friendly among them. It is a subjective assessment, albeit one based on generally accepted criteria (based on the little discourse the ESG world has held so far).

In Cannabis Stocks: ESG Considerations for a Budding Industry, I addressed ESG considerations related to the legal cannabis industry. The cannabis industry is an emergent subject of debate in ESG circles, and a real conundrum from an ESG perspective. That Insight covered two aspects:

Classification: Whether cannabis stocks should be considered "sin stocks" (along with alcohol, gambling, adult entertainment, and tobacco). This is the crux of most discussions to date, and primarily affects exclusionary screening typical of socially-responsible investing (SRI).

ESG Concerns: Regardless of classification, the cannabis industry presents a multitude of ESG concerns relevant to general ESG investing. Environmental concerns dominate, and are mostly negative. Social and Governance issues are more balanced, and more company-specific.
This Insight takes that conversation a step further, assessing the current cadre of cannabis-related stocks and identifying the most ESG-friendly among them. It is a subjective assessment, albeit one based on generally accepted criteria (based on the little discourse the ESG world has held so far).

Cannabis Stocks: Some of the More ESG-Friendly Stocks in This Budding Industry

We aggregate key quotes from earnings, The Transcript

The Transcript

We aggregate key quotes from earnings

Aggregate Key Quotes from Earnings

Thematic (Sector/Industry)

The economy is booming and everyone should enjoy it. The American economy is benefitting from tremendous amounts of pent-up demand and in some of the hardest-hit industries' activity is beginning to tick back up above 2019 levels. Along with that boom, there are clear signs of inflation and concerns about overheating. Even Janet Yellen seemed concerned for a few hours last week.

The economy is booming and everyone should enjoy it. The American economy is benefitting from tremendous amounts of pent-up demand and in some of the hardest-hit industries' activity is beginning to tick back up above 2019 levels. Along with that boom, there are clear signs of inflation and concerns about overheating. Even Janet Yellen seemed concerned for a few hours last week.

Technical Analyst, Vermilion Research

Joe Jasper

Technical Analyst

Technical and Quantitative Research

Vermilion Research

Vermilion’s objective is to deliver timely, actionable, and unique technical research to professional investors through the application of our various technical indicators.

Our research strategists seek to highlight securities which we believe are at major inflection points, based on our various technical and quantitative indicators, and offer asymmetric risk/return profiles. Our unique research methodology, centered on relative strength, enables our strategists to deliver superior investment recommendations.

Our process begins by organizing the universe of actively traded stocks into discrete sectors, then into industry groups. We then apply our technical and quantitative tools to identify developing price trends. Once attractive trends are identified within a selected sector or group, we screen for individual stocks which we believe offer the best risk/reward profile. We provide a historical perspective that often reveals, through our long-term charts, how price patterns often repeat themselves over time.

Technical Analysis

Last week we noted some deterioration in market dynamics, all while reiterating our overall constructive outlook looking weeks and months ahead. The fact is, “perfectly bullish” conditions rarely exist, and a weight of the evidence approach is necessary. To that end, the positives continue to outweigh the negatives and our outlook remains constructive.

Last week we noted some deterioration in market dynamics, all while reiterating our overall constructive outlook looking weeks and months ahead. The fact is, “perfectly bullish” conditions rarely exist, and a weight of the evidence approach is necessary. To that end, the positives continue to outweigh the negatives and our outlook remains constructive.

As the S&amp;P 500 pulls back to logical support at 3870, our weight-of-the-evidence approach continues to support our overall bullish outlook. While the positives heavily outweigh the negatives, the rising 10-year Treasury yield is threatening to become a headwind. In today’s report we highlight attractive Groups and stocks within Materials and Transportation.

As the S&amp;P 500 pulls back to logical support at 3870, our weight-of-the-evidence approach continues to support our overall bullish outlook. While the positives heavily outweigh the negatives, the rising 10-year Treasury yield is threatening to become a headwind. In today’s report we highlight attractive Groups and stocks within Materials and Transportation.

S&P 500 Testing 3870 Support; 10-Year Yield In Focus

Market dynamics remain positive and there continues to be an absence of breakdowns across the broad indexes and Sectors. As a result we remain bullish and we view any weakness as a buying opportunity. In today’s report we highlight attractive Groups and stocks within Materials and Technology.

Market dynamics remain positive and there continues to be an absence of breakdowns across the broad indexes and Sectors. As a result we remain bullish and we view any weakness as a buying opportunity. In today’s report we highlight attractive Groups and stocks within Materials and Technology.

U.S. Equity Strategy: Bullish Outlook Intact; Growth Vs. Value Stalemate Continues

United States

The Scotts Miracle-Gro Company markets branded consumer lawn and garden products, as well as a full range of products for professional horticulture. The Company manufactures and markets fertilizers, pest controls, plant foods, gardening soils, grass seed, and other products in North America and Europe. Scotts Miracle-Gro also provides lawn service in the United States.

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Scotts Miracle-Gro Co Cl A (SMG US)

Cannabis Stocks: Some of the More ESG-Friendly Stocks in This Budding Industry

This Insight assessing the current cadre of cannabis stocks and identifies the most ESG-friendly among them. Most being the operative word, because...

Kyle Rudden

The Transcript 05.10.21: Pent-up Demand

The economy is booming and everyone should enjoy it. The American economy is benefitting from tremendous amounts of pent-up demand and in some of...

The Transcript

Breakaway Gaps In Place

Market dynamics are not perfect, but the fact is that “perfectly bullish” conditions rarely exist. The positives continue to outweigh the negatives...

Vermilion Research

S&P 500 Testing 3870 Support; 10-Year Yield In Focus

As the S&P 500 pulls back to logical support at 3870. In today’s report we highlight attractive Groups and stocks within Materials and Transportation.

Vermilion Research

U.S. Equity Strategy: Bullish Outlook Intact; Growth Vs. Value Stalemate Continues

Market dynamics remain positive and there continues to be an absence of breakdowns across the broad indexes and Sectors. As a result we remain...

Vermilion Research

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