After breaking an 8-month losing streak in December with a strong close on the last day of the year, the Global Cannabis Stock Index began the year with a 5.2% decline, ending at 40.00:
The index, which had 41 qualifying members during the month following the quarterly rebalancing at the end of December, declined 34.1% in 2019:
The decline left the index at levels not seen in over three years, down almost 78% from its early 2018 closing high at 180.02 but up 3.6% from its closing low on December 18th at 38.62:
4 names gained more than 16% during December:
- KushCo Holdings (OTC: KSHB): +26.2%
- Innovative Industrial Properties (NYSE: IIPR): +18.0%
- Liberty Health Sciences (CSE: LHS) (OTC: LHSIF): +17.6%
- GrowGeneration (NASDAQ: GRWG): +16.1%
KushCo Holdings rallied after reporting a weak Q1 but maintaining its fiscal 2020 guidance for revenue to exceed $230 million. The company also saw an SEC investigation conclude with the agency taking no action against the company, a move that likely paves the way for it to list on the NASDAQ. Innovative Industrial Properties rebounded sharply after a very successful capital raise of $250 million for the REIT. Liberty Health Sciences posted sequential revenue growth of 52% as it posted sales in Florida during its fiscal Q3 of C$16.1 million with an operating profit margin of 15%. GrowGeneration, which recently listed on the NASDAQ after spending three years on the OTC, pre-announced strong Q4 revenue and provided guidance for 2020 of revenue of $130 million with an adjusted EBITDA margin of 11%.
4 names fell by more than 25% during December:
- Sundial Growers (NASDAQ: SNDL): -60.1%
- Green Growth Brands (CSE: GGB) (OTC: GGBXF): -41.8%
- MediPharm Labs (TSX: LABS) (OTC: MEDIF): -28.3%
- Greenlane Holdings (NASDAQ: GNLN): -25.0%
Sundial Growers, a Canadian LP which went public in August at $13, plunged to an all-time low near $1 following the departure of its CEO and its COO. Green Growth Brands, which has an extensive mall-based CBD business as well as cannabis operations in Nevada, Massachusetts and Florida, didn’t release any substantive news during January but continued to decline after terminating its pending acquisition of Moxie in mid-December. The stock declined 82% in 2019. Canadian LP MediPharm Labs, which is focused on extraction globally, fell after it filed a claim against previously unnamed client HEXO Corp (TSX: HEXO) (NYSE: HEXO) for not making contractual payments amounting to C$9.8 million. MediPharm Labs saw its stock gain 137% in 2019. Greenlane, a 2019 IPO at $17, ended the month at an all-time closing low of $2.44. The Florida-based company distributes accessories, CBD and liquid nicotine products, with substantial exposure to Juul.
We have also published separate reviews of the performance of the Canadian LP Index and the American Cannabis Operators Index:
- Canadian Cannabis Producers See Stocks Slide for 10th Consecutive Month
- American Cannabis Operator Index Drops 9% in January
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 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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