Global Cannabis Stock Index Pulls Back Slightly in August

The Global Cannabis Stock Index posted a gain for the first time in 17 months, rising 4.3% in July.  In August, it retreated slightly, falling 1.3% to 15.20.

After a 26% decline in 2021, the index, which posted an all-time closing low on August 23rd at  14.36 and 26 names, is down 53.7% thus far in 2022.

The index is up from the low close on 6/30 by 3.0%, but it is still below the prior all-time closing low of 16.95 on 3/18/20.

The strongest 4 names in August all rose at least 13%:

Green Thumb Industries rallied sharply, closing at nearly the highest price of the past four months. The stock is down 39.9% year-to-date. We weren’t surprised to see Canopy Growth perform so well after calling it out positively in our July 3rd newsletter. Despite the strong month, it is still down 57.9% in 2022. The other winners are also down year-to-date, with Cresco Labs falling 37.3% and Aurora Cannabis sinking 70.4%

The 4 weakest names in August all declined by at least 20%:

Leafly has plunged to a new all-time low. It is down 84.2% in 2022, when it was trading as a SPAC ahead of the close of that transaction. Scotts Miracle-Gro has dropped 58.4%. WM Technology is down 56.2%. 22nd Century Group has declined 56.6%

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. 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.

Get ahead of the crowd by signing up for 420 Investor, the largest & most comprehensive premium subscription service for cannabis traders and investors since 2013.

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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