Ancillary Cannabis Stocks Dip 2.5% in May

Following up on our recent discussion of 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.

After declining 4.6% in April, the index fell another 2.5% in May to 93.02:

The index includes companies that provide goods and services to cannabis operators. Each qualifying company must trade at a minimum of $0.50 per share  with a minimum average daily trading value of $500K 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 May, the index included 14 members, with 6 posting gains and 4 declining by more than 10%, with a median return of -3.4%:

The three strongest stocks included urban-gro (NASDAQ: UGRO), Akerna (NASDAQ: KERN) and GrowGeneration (NASDAQ: GRWG), each of which reported Q1 financials during the month Akerna had been one of the weakest names in April, with both urban-gro and GrowGeneration also having declined during the month.

The three weakest names during May included recent IPO Agrify (NASDAQ: AGFY), Turning Point Brands (NYSE: TPB) and Forian (NASDAQ: FORA), which was the strongest stock in April.

For June, recent IPO iPower (NASDAQ: IPW), an online hydroponic equipment retailer and supplier, joins, bringing the index to 15 members. 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 ancillary cannabis company 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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