Cannabis Stocks Rally Substantially in October

As we described in an earlier article, the Global Cannabis Stock Index recovered strongly from the challenging September in October, gaining 17.1%  The index is still down 59.9% in 2022.

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 fell 30.0% in September to 18.49, just above its 52-week closing low of 18.32, and it rallied substantially in October, gaining 33.9% to 24.53:

Down 11.3% in Q3, the index, after the large rally in October, is down 41.2% year-to-date, well ahead of the Global Cannabis Stock Index:

The index, which launched in October 2018, never out the low from March 2020:

During October, the best performing stock were Glass House Brands (OTC: GLASF) (NEO: GLAS.A.U), up 77.4%, and Ayr Wellness (OTC: AYRWF) (CSE: AYR.A), up 70.5%. No stocks fell at all during the month. The worst performing one was Curaleaf (OTC: CURLF) (CSE: CURA), which rose 9.3%. For November, the group will expand by three, with Charlotte’s Web (OTC: CWBHF) (TSX: CWEB), Goodness Growth (OTC: GDNSF) (CSE: GDNS) and Upexi (NASDAQ: UPXI) rejoining.

Ancillary Cannabis Index

The Ancillary Cannabis Index has captured a terrible sector in 2022, and in September it  plunged 27.1% to an all-time closing low of 17.80. In October, it recovered to 18.80, up 5.6%:

The rally broke a long chain of consecutive monthly declines. Even with the gain, the index is down 70.8% in 2022:

The index is down over 81% since launching at the end of March in 2021:

Two stocks fell, including Greenlane (NASDAQ: GNLN), down 68.7% after an equity offering, and AgriFORCE Growing Systems (NASDAQ: AGRI), down 18%. The strongest stock was Hydrofarm (NASDAQ: HYFM), which rallied 33% but is still down in 2022 by 90.9%. AgriForce, Greenlane and also Chicago Atlantic (NASDAQ: REFI) have exited the index for November, while Agrify (NASDAQ: AGFY) has returned with newcomer SHF Holdings (NASDAQ: SHFS).

Canadian Cannabis LP Index

In September, the Canadian Cannabis LP Index plunged 18.5%, and it rallied 18.4% to 97.04 in October:

The index has declined 50.2% 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 115.82 . The volatility continued in October, with the index rising 24.6% to 144.26. Tier 1, which is now down 54.1% in 2022, dropped 17.7% in 2021 when it ended at 314.28. Among Tier 1 companies, Tilray Brands (TSX: TLRY) (NASDAQ: TLRY), up 46.1%, was the best performer, while HEXO Corp. (TSX: HEXO) (NASDAQ: HEXO) was the worst performer, rising 10.4%.

Canadian Cannabis LP Tier 2 Index

Tier 2 index plunged 18.5% to 118.89 in September, and it recovered with an 8.0% rally in October to 128.42. In 2021, it lost 17.1%, closing at 267.36, and it is now down 52.0% in 2022. Among Tier 2 companies,  the worst stock was Auxly Cannabis Group (TSX: XLY) (OTC: CBWTF), which fell 10.0%, while the best performing stock was Entourage Health (TSX: ENTG) (OTC: ETRGF), which gained 33.3%.

Canadian Cannabis LP Tier 3 Index

Tier 3 index dropped 18.3% to 19.93 in September, and it rallied 23.2% in October to 24.55. It ended at 47.42 in 2021, declining 19.9%, and is now down 48.2% in 2022. Among Tier 3 companies,  some stocks fell and others rose sharply.

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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