American Cannabis Stocks Drop 13.1% in May

The American Cannabis Operator Index extended its post-March weakness this month, declining over 13% to 95.27:

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. It has now rebounded 34.9% from the December 24th low and is up 23.3% in 2019:

During May, the index included 27 companies, including 21 multi-state operators (MSOs) and 6 focused solely on CBD extracted from industrial hemp. Several MSOs are pursuing CBD strategies apart from their state-licensed cannabis businesses. Just 2 companies managed double-digit gains, while 17 posted double-digit losses, including three that lost more than 30% of their value:

For May, the index will include 30 names, as we added SLANG Worldwide (CSE: SLNG) (OTC: SLGWF), TerrAscend (CSE: TER) (OTC: TRSSF) TILT Holdings (CSE: TILT) (OTC: SVVTF) and Vireo Health (CSE: VREO) (OTC: VREOF). We also removed United Cannabis (OTC: CNAB) due to insufficient trading volume.

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

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