American Cannabis Operator Index Breaks 11-Month Losing Streak with 5% Gain in February

The American Cannabis Operator Index, which had begun 2022 with its 11th consecutive decline in January, advanced 5.4% in February to 40.71:

The index, which fell 23.4% in Q4, has declined 2.4% in 2022 from its year-end 2021 close of 41.71. After gaining 45.7% in 2020, when it ended at 63.05, it was down 33.9% in 2021:

After launching at the end of October 2018 with a value of 100, the index 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 closed 181% above the all-time closing low on March 18, 2020 at 14.50:

During February, the index included 19 companies, including 14 multi-state operators (MSOs), 2 single-state operators (SSOs) and 3 focused solely on CBD extracted from industrial hemp. 5 companies posted double-digit gains, while 3 declined by more than 5% during the month, with a median return of 4.9%:

The four best performing stocks in February included Goodness Growth (CSE: GDNS) (OTC: GDNSF), 4Front Ventures (CSE: FFNT) (OTC: FFNTF), Charlotte’s Web (TSX: CWEB) (OTC: CWBHF) and Cresco Labs (CSE: CL) (OTC: CRLBF). Goodness Growth rallied on the pending acquisition by Verano Holdings. 4Front was among the worst performers in January. Both Charlotte’s Web and Cresco Labs are now up year-to-date.

The four worst performing stocks during the month included cbdMD (NYSE American: YCBD), Planet 13 Holdings (CSE: PLTH) (OTC: PLNHF), Ascend Wellness (CSE: AAWH.U) (OTC: AAWH) and Jushi Holdings (CSE: JUSH) (OTC: JUSHF). Jushi was among the best performers in January, while Ascend was among the worst.

For March, the index will again include 19 stocks.

In the next monthly review, we will summarize the performance for March 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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