Cannabis Stocks Gain 8.6% in April

Cannabis stocks snapped a three-month losing streak, with the Global Cannabis Stock Index rallying 8.6% to 25.60:

The index, which had 35 qualifying members during the month following the quarterly rebalancing at the end of March, declined 34.1% in 2019 to 42.20 and is now down 39.3% in 2020:

After posting an all-time closing low of 16.95 set on March 18th, the index has rallied sharply to end the month 51% higher but down almost 86% from its early 2018 closing high at 180.02:

The strongest 4 names in April increased by at least 32%:

Neptune established a hand sanitizer line during the month, which seemed to spark investor interest. Akerna didn’t report any significant corporate news, but, like several other U.S. companies that trade on major exchanges, it continues to outperform the sector in 2020. Harvest Health & Recreation, one of the worst performers in March after a capital raise and merger termination, rallied after announcing a pending deal to sell up to 13 California dispensaries for up to $80 million, primarily in stock, to Hightimes Holding Corp. Cresco Labs, which had lagged some of the other largest MSOs in March after its co-founder departed, outpaced its peers in April. The company reported its Q4 financials during the month and also mutually terminated the pending Tryke acquisition.

The 4 weakest names fell by more than 21% during April:

iAnthus Capital defaulted on its debt and also replaced its CEO during the month. CannTrust, one of last month’s best performers, fell after being delisted from the NYSE. The company is scheduled to be delisted by the TSX as well. HEXO Corp raised C$46 million during the month by selling stock with warrants. Organigram fell after reporting its fiscal Q2 financials.

We have also published separate reviews of the performance of the Canadian LP Index and the American Cannabis Operators Index:

We will summarize the index performance again in a month. You can learn more about the index members and the qualifications for inclusion by visiting the Global Cannabis Stock Index. A more complete analysis of the index is available at 420Investor.com. Be sure to bookmark the page to stay current on cannabis stock price movements within the day or from day-to-day.

New Cannabis Ventures maintains six 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 last year and tracks the leading cultivators, processors and retailers of cannabis in the United States.

Get ahead of the crowd by signing up for 420 Investor, the largest & most comprehensive premium subscription service for cannabis traders and investors since 2013.

Exclusive article by Alan Brochstein, CFA
Alan Brochstein, CFA
Based in Houston, Alan leverages his experience as founder of online communities 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