With just a single day of trading left in 2018, cannabis stocks, as measured by the Global Cannabis Stock Index, are on track to snap a two-year winning streak. After gains of about 90% in both 2016 and 2017, the index has declined 55% this year:
The big challenges for the sector this year were the run-up into it ahead of California’s legalization, the pressure on overall equity markets and disappointment over Canada’s legalization.
Despite the broad weakness, many names were able to provide positive returns. In fact, 13 companies that are in the current index and that were trading at the beginning of the year have managed gains, including Aleafia (TSXV: ALEF) (OTC: ALEAF), Canopy Growth (TSX: WEED) (NYSE: CGC), Cronos Group (TSX: CRON) (NASDAQ: CRON), CV Sciences (CVSI), HEXO Corp (TSX: HEXO) (OTC: HYYDF), Innovative Industrial Properties (NYSE: IIPR), iAnthus Capital (CSE: IAN) (OTC: ITHUF), KushCo Holdings (OTC: KSHB), Marimed (OTC: MRMD), Neptune Wellness Solutions (TSX: NEPT) (NASDAQ: NEPT), Organigram (TSXV: OGRMF) (OTC: OGRMF), Origin House (CSE: OH) (OTC: ORHOF) and TerrAscend (CSE: TER) (OTC: TRSSF).
What made these 13 stocks perform well? Some of the common themes included capital raises from institutional or strategic investors, business model shifts and revenue generation. It’s likely no coincidence that more than half of them are included in the New Cannabis Ventures Public Cannabis Company Revenue Tracker.
In this video, I share some perspective on each of the winning stocks. For those interested in learning more about investing in publicly-traded cannabis stocks, be sure to check out 420 Investor, where I provide in-depth coverage of the sector. Please note that New Cannabis Ventures provides Investor Dashboards for clients Canopy Growth, iAnthus Capital, KushCo Holdings, Organigram and TerrAscend.
Click the video below to play: