You’re reading a copy of this week’s edition of the New Cannabis Ventures weekly newsletter, which we have been publishing since October 2015. The newsletter includes unique insight to help our readers stay ahead of the curve as well as links to the week’s most important news.
Thank you for the ongoing support for Alan Brochstein during his recovery. We are grateful for the contributions that continue to come in for his medical GoFundMe campaign. While there isn’t a substantial update to give, we hope to provide one soon.
News of the broad market having its worst performance in 14 years this month certainly isn’t helping cannabis stocks. Exchange-traded fund AdvisorShares Pure US Cannabis (MSOS) retreated to new all-time lows of $15.15 on 4/28.
When reviewing the technical chart, the candlestick of that day closed as what chart technicians would call a hammer, which indicates that buyers stepped in. The proceeding candle on 4/29, which was month-end, closed at $15.35. Although the volume was higher on 4/28 than any other day in April, it didn’t look like capitulation took place. However, capitulation is not needed for a reversal to happen either.
While one might compare cannabis stocks against other small cap stocks such as those in the iShares Russell 2000 ETF (IWM), you could argue the SPDR S&P Biotech ETF (XBI), which covers a gambit of biotech stocks, could be better to use due to its more speculative nature. When looking at MSOS against XBI, the performance in April between the two is more similar than comparing MSOS with IWM.
Using MSOS inception date of 9/1/20 and plotting it against XBI, the overall performance between the two appears even closer.
While cannabis traders yearn for a surprise catalyst that would help the sector break away from its downtrend, long-term investors continue to observe business fundamental trends of the top and emerging companies, many of which report financials in May.
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New Cannabis Ventures publishes curated articles as well as exclusive news. Here is some of the most interesting business content from this week:
- Ayr Wellness Opens 46th Florida Dispensary in Tampa
- Cannabis UPC Platform Lucid Green Raises $10 Million in Series B led by Gron Ventures and with Participation by Gotham Green Partners
- Canopy Growth Further Downsizes to Reduce Costs
- CEA Industries Plans for M&A and Organic Growth Following NASDAQ Listing
- Fire & Flower Receives $37.8M From Series B Warrant Exercise by Circle K owner Alimentation Couche-Tard
- Exclusive: Forian Is Bringing the Power of Analytics to the Cannabis Industry
- Glass House Brands Closes Acquisition of Cannabis Edibles Manufacturer PLUS Products for $25.6 Million
- Harborside Inc. Announces Conversion of US$5.87 Million Promissory Note to Equity
- HEXO Names Charlie Bowman as New CEO and Julius Ivancsits as CFO
- Humble & Fume Inc. Establishes Joint Venture to Build Leading North American Cannabis Distributor
- Sundial Q4 Revenue Increases 58% Sequentially to C$22.7 Million
- Guest Post: The Medical Cannabis Program Rules for The State of Texas are Open for Public Comment
- Turning Point Brands Zig-Zag Products Q1 Revenue Decreases 1% Sequentially to $45.7 Million
- Verano Q4 Revenue Increases 2% Sequentially to $211 Million
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.
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