American Cannabis Operators Index Stumbles Again in August

The American Cannabis Operator Index extended its post-March weakness again in August, declining 16.4% to 61.62 in action that mimicked the decline in July:

The index, which launched at the end of October with a value of 100, traded as low as 70.64 in late December after having reached a closing high of 124.16 in early November. This past month, it eclipsed the prior December low and is now down 20.3% in 2019:

During August, the index included 25 companies, including 20 multi-state operators (MSOs) and 5 focused solely on CBD extracted from industrial hemp. Several MSOs are pursuing CBD strategies apart from their state-licensed cannabis businesses. 4 companies managed gains, while 16 posted double-digit losses, including 7 that lost more than 25% of their value:

Cresco Labs (CSE: CL) (OTC: CRLBF), which lost almost half of its value from late April to early August, led the way with a gain of only 8.5%. The stock is now up 22.4% in 2019. Sunniva (CSE: SNN) (OTC: SNNVF) led the stocks that declined, losing over half its value after it announced further construction delays in California and retracted its revenue guidance. Last month’s winner, DionyMed Brands (CSE: DYME) (OTC: DYMEF), also lost more than half its value. Acreage Holdings (CSE: ACRG) (OTC: ACRGF) posted new all-time lows during August and is down substantially in 2019, even after adding back the $2.63 dividend shareholders received from Canopy Growth, which would give it a total return of -47.8%.

For August, the number of names in the index will increase by 1 to 26. Joining the index are MSO AYR Strategies (CSE: AYR) (OTC: AYRSF), Marimed (OTC: MRMD) and Veritas Farms (OTC: VFRM), the latter two of which are hemp-focused. The stocks being removed include  Chemesis International (CSE: CSI) (OTC: CADMF) and Dionymed Brands, both of which failed to maintain the minimum daily volume requirement.

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.

Get ahead of the crowd by signing up for 420 Investor, the largest & most comprehensive premium subscription service for cannabis traders and investors since 2013.

Exclusive article by Alan Brochstein, CFA
Alan Brochstein, CFA
Based in Houston, Alan leverages his experience as founder of online communities 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

Get Our Sunday Newsletter