After a 57.4% gain in Q1, the Global Cannabis Stock Index moved sharply lower again in October, its seventh consecutive monthly decline, as it lost 11.2% to 47.29:
The index, which had 44 qualifying members during the month following the quarterly rebalancing at the end of September, declined 54.9% in 2018 and has now lost 26.1% as of the end of October:
The decline left the index at levels not seen in over three years and down more than 73% from its early 2018 high:
4 names gained more than 20% during October:
- KushCo Holdings (OTC: KSHB): +34.5%
- Trulieve (CSE: TRUL) (OTC: TCNNF): +24.3%
- MediPharm Labs (TSX: LABS) (OTC: MEDIF): +23.1%
- CV Sciences (OTC: CVSI): +20.3%
KushCo and CV Sciences had been among the worst performers in September and recovered some of their losses in October. Investors appear to be showing greater appreciation for the strong balance sheets, profitable business and positive cash flow generation from Trulieve and MediPharm Labs, both of which, along with KushCo and CV Sciences, will be reporting financials this month.
4 names fell by more than 39% during October:
- Green Organic Dutchman (TSX: TGOD) (OTC: TGODF): -51.0%
- HEXO Corp (TSX: HEXO) (NYSE: HEXO): -45.7%
- PharmaCielo (TSXV: PCLO) (OTC: PHCEF): -45.5%
- Supreme Cannabis (TSX: FIRE) (OTC: SPRWF): -39.7%
Green Organic Dutchman slowed down its expansion due its inability to raise debt capital on favorable terms. HEXO Corp missed its revenue guidance for its fiscal Q4 as it generated a tremendous operating loss and withdrew its previous guidance for FY20 revenue. The company raised capital at a depressed price as well. PharmaCielo was one of the best performers in September. Supreme Cannabis moved to multi-year lows as its founder, John Fowler, departed.
We have also published separate reviews of the performance of the Canadian LP Index and the American Cannabis Operators Index:
- Canadian Cannabis Licensed Producer Index Suffers 18.2% Loss in October
- American Cannabis Operator Index Declines 6.1% in October
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.
New Cannabis Ventures maintains six 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 last year and tracks the leading cultivators, processors and retailers of cannabis in the United States.