Ancillary Cannabis Stocks Gain 2.7% in March

The Ancillary Cannabis Index bounced back from a weak beginning to the year, advancing 2.7% in March to 52.89:

The index has declined 47.1% since its introduction at the end of March 2021 compared to the decline of 54.8% in the Global Cannabis Stock Index, and it dropped 17.7% during Q1 from its close at 64.27 at the end of 2021:

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 $500K at the time the index is rebalanced each month. At the end of October, we raised the minimum average daily trading value to $1 million. Additionally, members of the index must generate at least $1 million per quarter from its ancillary operations.

During March, the index included 14 members, with 5 posting a gain in excess of 10% and and 5 declining by more than 10%, with a median return of 5.2%:

The three strongest stocks included WM Technology (NASDAQ: MAPS), CEA Industries (NASDAQ: CEAD) and urban-gro (NASDAQ: UGRO). WM Technology, which was the strongest name in February as well, gained 30.9% in Q1. CEA Industries, which recently uplisted and raised $26 million in a public offering, fell 48.4% in Q1. urban-gro has gained 2.1% in 2022.

The three weakest names during the month included Hydrofarm (NASDAQ: HYFM), Agrify (NASDAQ: AGFY) and Power REIT (NYSE American: PW). Hydrofarm, one of the stronger names in February, is down 46.4% year-to-date. Agrify, a $10 IPO in early 2021, has declined 49.8% in 2022. Power REIT extended its losses from January and February and is now down 42% in 2022 after a strong 2021.

For April, we have removed iPower (NASDAQ: IPW) after it no longer met the minimum trading volume. We have also added Akerna (NASDAQ: KERN).

In the next monthly review, we will summarize the performance for April 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.

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