Cannabis Investors Hope for a Change in Market Direction

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We want to welcome our readers to the new year and are thankful that the atrocious year for cannabis stocks is finally over. The New Cannabis Ventures Global Cannabis Stock Index fell more than 70% in 2022 and endured a rough December.

After such a massive decline, the worst in the history of the index, the market could offer high returns to investors in 2023 and beyond. If the index were to triple, it would still be down since the end of 2021. To get to the level it reached at the end of 2020, it would need to increase more than 4.5 times.

Just because a stock or a sector declines doesn’t mean that it will rally. We believe, though, that the market is very oversold and offers great valuations for good companies.

I am reading a fantastic book now, Red Notice: A True Story of High Finance, Murder, and One Man’s Fight for Justice by Bill Browder, the founder and CEO of Hermitage Capital. Browder discusses his building of a massive Russian-focused investment fund and seeing it collapse in 1998. He was down over 90% quickly and was facing a plethora of challenges in Russia at the time. Hermitage recovered and became larger than ever shortly after the collapse. We hope that cannabis stocks recover from the big losses in 2021 and 2022 that have left the Global Cannabis Stock Index down 89.5% since the peak of 2021 in February.

We have shared the reasons for our positive outlook and have discussed the current challenges the stocks face. Even without two catalysts that could really ignite investor interest, which include NASDAQ listing for American cannabis companies or the end of 280E taxation, we think that there are drivers ahead that could restore confidence in investors, who are struggling with the current slowing of sales, the tightening of margins and the limited access to capital.

New Cannabis Ventures wishes you a great and prosperous new year and for the industry to recover.

New Cannabis Ventures publishes curated articles as well as exclusive news. Here is some of the most interesting business content from this week:


Empowering people of color in the cannabis business is Amber Senter’s passion. Founder and CEO of MAKR House and the co-founder, chair of the board and executive director of Supernova Women, Senter says much work needs to be done when it comes to social equity within the cannabis industry. In an exclusive interview, Senter discusses the challenges she had faced while growing her own California cannabis house of brands. She also talks about how other cities can learn from Oakland California’s robust social equity program that has helped to remove barriers to entry into the cannabis market.

After spending the year on a roller coaster, the Global Cannabis Stock Index declined 29.0% to 9.71 in December and down 70.4% for the year. Since its peak in February 2021, the index has dropped 89.5% from the 92.48 closing high. Jazz Pharmaceuticals, Turning Point Brands, Chicago Atlantic Real Estate Finance and AFC Gamma were the strongest four names – although Jazz was the only one to see an increase (1.5%). The four weakest were Ayr Wellness, Columbia Care, Hempacco and Cresco Labs – all were down significantly. There are some changes to the index for the new year.

To get real-time updates download our free mobile app for Android or Apple devices, like our Facebook page, or follow Alan on Twitter. Share and discover industry news with like-minded people on the largest cannabis investor and entrepreneur group on LinkedIn.

Get ahead of the crowd! If you are a cannabis investor and find value in our Sunday newsletters, subscribe to 420 Investor, Alan’s comprehensive stock due diligence platform since 2013. Gain immediate access to real-time and in-depth information and market intelligence about the publicly traded cannabis sector, including daily videos, weekly chats, model portfolios, a community forum and much more.

Use the suite of professionally managed NCV Cannabis Stock Indices to monitor the performance of publicly-traded cannabis companies within the day or over longer time-frames. In addition to the comprehensive Global Cannabis Stock Index, we offer a family of indices to track Canadian licensed producers as well as the American Cannabis Operator Index and the Ancillary Cannabis Index.

View the Public Cannabis Company Revenue & Income Tracker, which ranks the top revenue producing cannabis stocks.

Stay on top of some of the most important communications from public companies by viewing upcoming cannabis investor earnings conference calls.

Discover upcoming new listings with the curated Cannabis Stock IPOs and New Issues Tracker.


Alan & Joel

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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