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.
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.