CBD Drives American Cannabis Operator Index Higher in March

The American Cannabis Operator Index extended its strong start to 2019, gaining 8.9% in March, to leave it up 48.4% thus far in 2019:

The index, which launched at the end of October with a value of 100, traded as low as 70.64 in late December after having reached a closing high of 124.16 in early November and has now rebounded 62.4% from the December 24th low:

During March, the index included 23 companies, including 18 multi-state operators (MSOs) and 5 focused solely on CBD extracted from industrial hemp. Several MSOs are pursuing CBD strategies apart from their state-licensed cannabis businesses.  9 companies managed double-digit gains, while 3 posted double-digit losses:

The seven best performers, all up more than 20%,  included Cannex Capital (CSE: CNNX) (OTC: CNXXF), which remains halted in Canada pending its merger with 4FrontCharlotte’s Web (CSE: CWEB) (OTC: CWBHF), Origin House (CSE: OH) (OTC: ORHOF), Elixinol Global (ASX: EXL) (OTC: ELLXF), Harvest Health and Recreation (CSE: HARV) (OTC: HRVSF), CV Sciences (OTC:CVSI) and Cresco Labs (CSE: CL) (OTC: CRLBF). Charlotte’s Web, Elixinol and CV Sciences are all pure-play CBD companies, and Cresco Labs recently launched its CBD business, though the driver of its strength was likely the announcement of an acquisition in Florida. MJardin Group (CSE: MJAR) (OTC: MJARF) and United Cannabis (OTC: CNAB) both declined more than 20%.

For April, the index will include 24 names, as DionyMed Brands (CSE: DYME) (OTC: HMDEF)  and Plus Products (CSE: PLUS) (OTC: PLPRF) enter for the first time.  We also removed Dixie Brands (CSE: DIXI) (OTC: DXBRF) due to its daily average trading value declining below the minimum of $100K in the U.S.

In the next monthly review, we will summarize the performance for April and discuss any additions or deletions. Be sure to bookmark the page to stay current on American cannabis operators stock price movements within the day or from day-to-day.

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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

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