Global Cannabis Stock Index Declines for Seventh Consecutive Month

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 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 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:

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.

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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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