American Cannabis Stocks Return to Year-End Levels in July

The American Cannabis Operator Index fell for the fifth straight month after having scored five straight monthly gains, declining 10.7% to 62.67:

After gaining 45.7% in 2020, when it ended at 63.05, the index is down 0.6% in 2021 and has gained 81.5% 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 332.1% from an all-time closing low on March 18, 2020 at 14.50:

During July, the index included 30 companies, including 26 multi-state operators (MSOs) and 4 focused solely on CBD extracted from industrial hemp. 4 companies posted modest gains, while 16 declined by more than 10% during the month:

The four best performing stocks in July included Columbia Care (NEO: CCHW) (CSE: CCHW) (OTC: CCHWF), one of the weakest names in June,  Lowell Farms (CSE: LOWL) (OTC: LOWLF), Ayr Wellness (CSE: AYR.A) (OTC: AYRWF) and Ascend Wellness (CSE: AAWH) (OTC: AAWH). Year-to-date, Columbia Care has decreased 20.7%, Lowell Farms has gained 8.8%, and Ayr Wellness has increased 21.7%. Ascend went public after the year began and has increased 34.9% from its $8 IPO price.

The four worst performing stocks during the month included TerrAscend (CSE: TER) (OTC: TRSSF), The Parent Company (NEO: GRAM.U) (OTC: GRAMF), Planet 13 Holdings (CSE: PLTH) (OTC: PLNHF), one of the strongest stocks in June, and Stem Holdings (CSE: STEM) (OTC: STMH). TerrAscend has declined 19.4% in 2021, The Parent Company has dropped 60.8%, Planet 13 has fallen 6.1%, and STEM Holdings has lost 32.4%.

For August, the index will include 30 stocks, with two additions, including C21 Investments (CSE: CXXI) (OTC: CXXIF) and Glass House (NEO: GLAS.A.U) (OTC: GLASF), and two removals, including CV Sciences (OTC: CVSI) and Stem Holdings.

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