Global Cannabis Stock Index Declines 0.5% in April

Cannabis stocks, as measured by the Global Cannabis Stock Index, fell slightly in April, declining 0.5% to 107.33, after bouncing twice near 95 early in the month:

The index, which went through its last quarterly rebalancing at the end of March and has 68 qualifying members that were equally weighted at the time, declined 24.5% in the first three months of the year. Despite the losses, the index is still up almost 89% since bottoming in late October.

The biggest trend of the month was the recovery in U.S. focused names, many of which posted substantial gains in the month. Offsetting the strength in domestic names, Canadian licensed producers endured double-digit declines.

The index members include 47 that are listed in Canada (65% weighting), including 19 licensed producers (25% weighting), and 3 that are listed in Australia (5% weighting). U.S. listed companies comprise just 31% of the index by weight as of April 30th.

Sixteen companies posted double-digit gains:

Twenty-eight companies posted double-digit declines:

The index shot up dramatically on April 13th, when news reports indicated that Colorado Senator Cory Gardner had struck a deal with President Trump regarding the protection of states rights as it relates to the regulation of cannabis. Multi-state operators like CannaRoyalty (CSE: CRZ) (OTC: CNRRF), iAnthus Capital (CSE: IAN) (OTC: ITHUF), MPX Bioceutical (CSE: MPX) (OTC: MPXEF) and Terra Tech (OTC: TRTC) all benefited from investor perception of potentially diminished risks. Canadian LPs or companies that own stakes in LPs represented half of the twenty-eight double digit decliners, perhaps reflecting a shift in investor positioning after the U.S. political news. GW Pharma (NASDAQ: GWPH) advanced on news that an FDA Advisory Committee had given its Epidiolex unanimous support.

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. Be sure to bookmark the page to stay current on cannabis stock price movements within the day or from day-to-day.

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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