Ancillary Cannabis Index Declines 10.6% in November

Following up on our discussion earlier this year about how cannabis investors have embraced publicly traded ancillary companies, New Cannabis Ventures launched its seventh proprietary index, the Ancillary Cannabis Index, at the end of March.

The index has outpaced the overall market since the launch, but in November it fell more than than the New Cannabis Ventures Global Cannabis Stock Index, declining 10.6% to 68.87, slightly worse than the 9.6% decline in the Global Cannabis Stock Index:

The index has declined 31.1% since its introduction at the end of March compared to the decline of 40.6% in the Global Cannabis Stock Index:

The Ancillary Cannabis Index includes companies that provide goods and services to cannabis operators. Initially, each qualifying company was required to trade at a minimum of $0.50 per share with a minimum average daily trading value of $1 million at the time the index is rebalanced each month. Additionally, members of the index must generate at least $1 million per quarter from its ancillary operations.

During November, the index included 12 members, with 2 posting a gains and 2 declining by more than 20%, with a median return of -5.9%:

The three strongest stocks included Power REIT (NYSE American: PW), Hydrofarm (NASDAQ: HYFM) and Turning Point Brands (NYSE: TPB), which was one of the weakest names in October. Power REIT is now up 96% in 2021, while Hydrofarm has declined 38% and Turning Point Brands has dropped 15%.

The three weakest names during November included WM Technology (NASDAQ: MAPS), Greenlane (NASDAQ: GNLN) and GrowGeneration (NASDAQ: GRWG). WM Technology, which was trading as a SPAC at year-end, has declined 44%. Greenlane has lost 70%, and GrowGeneration has dropped 60%.

For December, we have made no changes to the index membership.

In the next monthly review, we will summarize the performance for December and discuss any additions or deletions. Be sure to bookmark the page to stay current on ancillary cannabis company 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 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

Get Our Sunday Newsletter