American Cannabis Companies Continued to Consolidate in May

The American Cannabis Operator Index fell for the third straight month after having scored five straight monthly gains, declining 2.3% to 77.86:

After gaining 45.7% in 2020, when it ended at 63.05, the index is up 23.5% in 2021 and has gained 157.8% over the past year:

The index, which launched at the end of October 2018 with a value of 100, reached a closing high of 124.16 a week later before declining to 70.64 in late December 2018. It then rallied as high as 119.53 in early April 2019 before selling off over the balance of the year and into March 2020. It has rebounded 437.0% from an all-time closing low on March 18, 2020 at 14.50:

During May, the index included 29 companies, including 25 multi-state operators (MSOs) and 4 focused solely on CBD extracted from industrial hemp. 5 companies posted double-digit returns, while 11 declined by more than 10% during the month:

The four best performing stocks in May included Marimed (OTC: MRMD), Harvest Health and Recreation (CSE: HARV) (OTC: HRVSF), Charlotte’s Web (TSX: CWEB) (OTC: CWBHF) and Vireo Health (CSE: VREO) (OTC: VREOF). Year-to-date, Marimed has gained 134%, Harvest has increased 92%, Charlotte’s Web has rallied 45%, and Vireo has jumped 43%.

The four worst performing stocks during the month included HempFusion (CSE: CBD.U) (OTC: CBDHF), the worst stock in April as well, cbdMD (NYSE American: YCBD), MedMen (CSE: MMEN) (OTC: MMNFF) and The Parent Company (NEO: GRAM.U) (OTC: GRAMF). HempFusion has lost 30% since its IPO earlier this year. cbdMD has gained 3% year-to-date, while MedMen is up 117%. The Parent Company has declined 39%.

For June, the index will include 30 stocks, with Terra Tech (OTC: TRTC) removed after no longer meeting the minimum price required for inclusion as of May 26th. Joining the index for the first time will be Gage Growth (CSE: GAGE) (OTC: GAEGF), while Chalice Farms (CSE: CHAL) (OTC: GLDFF), formerly Golden Leaf Holdings, returns following its reverse split.

In the next monthly review, we will summarize the performance for May and discuss any additions or deletions. Be sure to bookmark the page to stay current on American cannabis operators stock price movements within the day or from day-to-day.

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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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