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 Wellness Solutions (TSX: NEPT) (NASDAQ: NEPT): +78.6%
- Akerna (NASDAQ: KERN): +63.1%
- Harvest Health and Recreation (CSE: HARV) (OTC: HRVSF): +47.5%
- Cresco Labs (CSE: CL) (OTC: CRLBF): +32.8%
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 (CSE: IAN) (OTC: ITHUF): -61.8%
- CannTrust (OTC: CNTTQ): -42.0%
- HEXO Corp (TSX: HEXO) (NYSE: HEXO): -38.4%
- Organigram (TSX: OGI) (NASDAQ: OGI): -21.0%
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:
- Canadian Cannabis Stocks Score First Monthly Gain in More Than a Year
- American Cannabis Operator Stocks Bounce in April
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.