The Global Cannabis Stock Index fell for the seventh consecutive month, declining 12.6% to 45.02:
The index, which was down 21.2% in Q3, had 44 qualifying members during the month following the quarterly rebalancing at the end of June. After increasing 5.2% in 2020 to 44.39, it is now up 1.4% in 2021. It has declined 51.3% from its 2021 closing high of 92.48 on February 10th but has gained 64.0% over the past year:
After posting an all-time closing low of 16.95 set on March 18, 2020, the index has rallied sharply to end the month 166% higher but still down 75% from its early 2018 closing high at 180.02:
The strongest 4 names in September all gained at least 1%:
- Ayr Wellness (CSE: AYR.A) (OTC: AYWRF): +7.3%
- WM Technology (NASDAQ: MAPS): +4.2%
- Harvest Health & Recreation (CSE: HARV) (OTC: HRVSF): +4.2%
- IM Cannabis (CSE: IMCC) (NASDAQ: IMCC): +1.4%
Ayr Wellness is up 11% in 2021. WM Technology has increased 14% since year-end, when it was trading as a SPAC ahead of the merger. Harvest Health & Recreation has gained 44%, while IM Cannabis has declined by 55%.
The 4 weakest names in September all declined by more than 25%:
- Flora Growth (NASDAQ: FLGC): -39.4%
- Agrify (NASDAQ: AGFY): -34.7%
- HEXO Corp (TSX: HEXO) (NASDAQ: HEXO): -25.2%
- Hydrofarm (NASDAQ: HYFM): – 25.1%
Flora Growth has gained 13% since its $5 IPO in May, while Agrify has increased 85% since its $10 IPO in January. HEXO, which was one of the weakest names in June, July and August, is now down 50% in 2021. Hydrofarm has lost 28% thus far this year.
We have also published separate reviews of the performance of the Canadian LP Index , the American Cannabis Operators Index and the Ancillary Cannabis Index:
- The Canadian Licensed Producer Index Is Now Down 4% in 2021
- American Cannabis Operator Index Declines 2.7% in September
- Ancillary Cannabis Stocks Drop 10% in September
For Q4, the index will have 43 names, with the removals of 4Front (CSE: FFNT) (OTC: FFNTF), Forian (NASDAQ: FORA), TPCO Holdings (NEO: GRAM.U) (OTC: GRAMF), IM Cannabis (CSE: IMCC) (NASDAQ: IMCC), iPower (NASDAQ: IPW), Neptune Wellness Solutions (TSX: NEPT) (NASDAQ: NEPT) and Valens (TSX: VLNS) (OTC: VLNCF) and the additions of AgriFORCE (NASDAQ: AGRI), Grove, Inc. (NASDAQ: GRVI), Intercure (NASDAQ: INCR), Lexaria (NASDAQ: LEXX), Pharmacyte Biotech (NASDAQ: PMCB) and TAAT Global Alternatives (CSE: TAAT) (OTC: TOBAF).
We will summarize the index performance again in a month as well as provide a summary of the changes from the quarterly rebalancing. 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 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. More recently, 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.