Cannabis Indexes Fall Far in September

As we described in an earlier article, the Global Cannabis Stock Index fell an astounding 25.9% during September, which was its worse month in more than three years. This followed a rally in July, the first in over 17 months, and a small decline in August and left it down 65.7% in 2022 so far.

In this exclusive article we will summarize the performance of the other managed indices that New Cannabis Ventures offers to its readers. We will discuss the performance of the American Cannabis Operator Index, Ancillary Cannabis Index and Canadian Cannabis LP Index as well as Canadian Cannabis LP index Tier 1, 2 and 3.

American Cannabis Stocks Index

The American Cannabis Operator Index  performed very well in the first two months of Q3, but the index fell 30.0% in September to 18.49, just above its 52-week closing low of 18.32:

After rallying 26.8% quarter-to-date in July and August, the September decline left the index down 11.3% in Q3. Year-to-date, it has declined 55.7%:

This index, which launched at the end of October in 2018, still hasn’t taken out the March 2020 lows:

During September, the best performing stock, which is exiting the index, was Upexi (NASDAQ: UPXI), formerly Grove, Inc., which fell 5.6%. Three companies fell more than 40%, including Ayr Wellness (OTC: AYRWF) (CSE: AYR.A), Columbia Care (OTC: CCHWF) (CSE: CCHW) (NEO: CCHW) and Trulieve (OTC: TCNNF) (CSE: TRUL). MariMed (OTC: MRMD) (CSE: MRMD) has rejoined the index for September, boosting the index to 13 members.

Ancillary Cannabis Index

The Ancillary Cannabis Index has captured a terrible sector in 2022, and in September it  plunged 27.1% to and all-time closing low of 17.80:

The index fell each month during the quarter and lost 31.2%. It is down 72.3% year-to-date:

The index is down over 82% since launching 18 months ago:

All of the stocks fell, with the best performing stocks during September falling up to 9%. These included Innovative Industrial Properties (NYSE: IIPR), Chicago Atlantic Real Estate (NASDAQ: REFI) and Turning Point Brands (NYSE: TPB).  The worst performing stock was, by far, Leafly (NASDAQ: LFLY), which fell 57.0% and is down 93.2% in 2022. During the month, there were 12 names that qualified for inclusion, but it has decreased to 11 for this month.  Exiting for September are Agrify (NASDAQ: AGFY) and CEA Industries (NASDAQ: CEAD), while AgriFORCE (NASDAQ: AGRI) reentered.

Canadian Cannabis LP Index

Last month, the Canadian Cannabis LP Index broke a fourteen-month losing streak, rising 6.2% to 100.55. In September, it fell 18.5% to 81.97, a new 52-week low:

The index has declined 58.0% in 2022 from its year-end 2021 close of 194.95:

The index remains above its early-day lows, but it is down a lot from the peak:

Canadian Cannabis LP Tier 1 Index

Tier 1 index soared 16.9% in August to 142.67 but if sank 18.8% in September to 1115.82 . Tier 1, which is now down 63.2% in 2022, dropped 17.7% in 2021 when it ended at 314.28. Among Tier 1 companies, HEXO Corp. (TSX: HEXO) (NASDAQ: HEXO) was the best performer, falling 12.7% , while Tilray Brands (TSX: TLRY) (NASDAQ: TLRY) was the worst at down 23.7%.

Canadian Cannabis LP Tier 2 Index

Tier 2 index plunged 18.5% to 118.89 in September. In 2021, it lost 17.1%, closing at 267.36, and it is now down 55.5% in 2022. Among Tier 2 companies, Auxly Cannabis (TSX: XLY) (OTC: CBWTF) was unchanged in price, which was the best of the group, after being the worst in August at -33.3%. The worst performing stock was Entourage Health (CSE: ENTG) (OTC: ETRGF), which fell 33.3%.

Canadian Cannabis LP Tier 3 Index

Tier 3 index dropped 18.3% to 19.93 in September. It ended at 47.42 in 2021, declining 19.9%, and is now down 58.0% in 2022. Unchanged in price, Lifeist Wellness (TSXV: LFST) (OTC: NXTTF) was the leader, and VIVO Cannabis (TSX: VIVO) (OTC: VVCIF), which fell 33.3%, was the worst performer.

New Cannabis Ventures maintains seven proprietary indices designed to help investors monitor the publicly-traded cannabis stocks, including the Global Cannabis Stock Index as well as the Canadian Cannabis LP Index and its three sub-indices. The sixth index, the American Cannabis Operator Index, was launched at the end of October 2018 and tracks the leading cultivators, processors and retailers of cannabis in the United States. Afterwards, we introduced the Ancillary Cannabis Index at the end of March 2021, reflecting the increasing number of publicly-traded companies providing goods or services to cannabis operators.

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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