A Reversal of Leadership for Cannabis Stocks

As we described in a previous article, the Global Cannabis Stock Index extended the November bounce after the huge October loss, rallying 8.1% in December. That index was down 20.1% in 2023, which followed a record decline of 70.4% for 2022.

In this article, we summarize the performance of the other managed indices that New Cannabis Ventures offers to its readers. We discuss the performance of the American Cannabis Operator Index, Ancillary Cannabis Index and Canadian Cannabis LP Index. The one that was quite strong in August and in September but led the way lower in October reversed in November, showing leadership. In December, it was the weakest.

American Cannabis Stocks Index

The American Cannabis Operator Index was crushed in October and then partially reversed in November as the strongest sub-sector. In December, it fell 3.6% to 15.34 :

The index fell 8.6% in Q1 and then 6.9% in Q2. In Q3, it rallied 50.2%. In Q4, it pulled back 15.7%. In 2023, the index rallied 7.6%:

The index, which launched in October 2018, made all-time low in August. It is still down a lot from when it launched:

The best performing MSO in December was Cannabist Company (OTC: CBSTF) (NEO: CBST), which was formerly Columbia Care and which soared 33.9%. During 2023, the stock, which was the worst in the index in November, fell 40.0%. Jushi Holdings (OTC: JUSHF) (CSE: JUSH) was the weakest stock, falling 28.8%. It was down 39.6% in 2023.

In January, the index will still have 12 members .

Ancillary Cannabis Index

The Ancillary Cannabis Index was stronger than the Global Cannabis Stock Index, rising 9.7% to 13.38:

In Q4, the index lifted 0.9%. After a massive loss of 76.6% in 2022 to 15.02, it declined 10.9% in 2023, which was better than the Global Cannabis Stock Index:

The index is down almost 87% since launching at the end of March in 2021:

The best performing stock in the index in December was , rising 23.5%. It fell 0.5% during the year. The worst stock was GrowGeneration (NASDAQ: GRWG), declining 5.6% after having been the best stock in November. The stock dropped 36.0% in 2023.

In January, the index will have seven members. Joining is NewLake Capital (OTC: NLCP).

Canadian Cannabis LP Index

The Canadian Cannabis LP Index was very strong to begin the year, but it has been weak since then. In December, it dropped 0.9% to 60.85:

The index, after losing 9.4% in Q4 , was down 16.2% in 2023. It fell 62.8% in 2022 to 72.59:

The LP index, which had made a new all-time low several times this year and again in December, is down a lot from its peak:

The Canadian LPs trade mainly below C$1, with just just four of the stocks having a higher price at the end of December. 12 of the 20 stocks in the index closed below C$0.25. During December, Canopy Growth (TSX: WEED) (NASDAQ: CGC) fell by 9.9% and Organigram (TSX: OGI) (NASDAQ: OGI) dropped 2.3%. Tilray Brands (TSX: TLRY) (NASDAQ: TLRY) moved 26.4% higher, and Cronos Group (TSX: CRON) (NASDAQ: CRON) gained 0.4%.

In January, the index will have the same 20 members.

New Cannabis Ventures maintains four proprietary indices designed to help investors monitor the publicly-traded cannabis stocks, including the Global Cannabis Stock Index as well as the Canadian Cannabis LP Index. The third index, the American Cannabis Operator Index, was launched at the end of October 2018 and tracks the leading cultivators, processors and retailers of cannabis in the United States. Afterwards, we introduced the Ancillary Cannabis Index at the end of March 2021, reflecting the increasing number of publicly-traded companies providing goods or services to cannabis operators.

Exclusive article by Alan Brochstein, CFA
Alan Brochstein, CFA
Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email

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