American Cannabis Operator Index Declines 10.6% in August

The American Cannabis Operator Index fell for the sixth straight month after having scored five straight monthly gains, declining 10.7% to 56.00:

After gaining 45.7% in 2020, when it ended at 63.05, the index is down 11.2% in 2021 and has gained 39.6% 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 286.2% from an all-time closing low on March 18, 2020 at 14.50:

During August, the index included 30 companies, including 27 multi-state operators (MSOs) and 3 focused solely on CBD extracted from industrial hemp. 3 companies posted gains, while 4 declined by more than 20% during the month, with a median return of -12.3%:

The four best performing stocks in July included Unrivaled Brands (OTC: UNRV), formerly Terra Tech, MariMed (OTC: MRMD), Green Thumb Industries (CSE: GTII) (OTC: GTBIF) and C21 Investments (CSE: CXXI) (OTC: CXXIF). Year-to-date, Unrivaled Brands has doubled, MariMed has gained 103%, GTI has increased 21%, and C21 Investments has declined 44%.

The four worst performing stocks during the month included Next Green Wave (CSE: NGW) (OTC: NXGWF), Verano Holdings (CSE: VRNO) (OTC: VRNOF), Harborside (CSE: HBOR) (OTC: HBORF) and Charlotte’s Web (TSX: CWEB) (OTC: CWBHF). Next Green Wave has gained 37% thus far in 2021, while Harborside and Charlotte’s Web have declined 44% and 33%, respectively. Verano Holdings didn’t begin trading until February.

For August, the index will include 30 stocks, with two additions, including former members iAnthus (CSE: IAN) (OTC: ITHUF) and MedMen (CSE: MMEN) (OTC: MMNFF), and two removals, including C21 Investments and Harborside, both of which failed to meet the minimum daily trading value.

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