Global Cannabis Stocks Decline 22.3% in October

Cannabis stocks, as measured by the Global Cannabis Stock Index, wiped out the rally from mid-August, declining 22.3% to 88.22 in October:

The index, which has 61 qualifying members after the rebalancing at the end of September, has declined 37.2% in 2018 despite the strength in Canadian licensed producers but is still up 56.9% from late October 2017, when the market ended a correction:

Despite the sharply lower prices, five names rallied, with two increasing more than 10%:

MedMen (CSE: MMEN) (OTC: MMNFF) led the index with a 29.3% gain. During the month it raised $94 million with a secured loan, entered the Arizona market, made an acquisition in Chicago, bought a license in Northern California and announced the $682 million pending acquisition of PharmaCann. Marimed (OTC: MRMD), which is up 546% in 2018, was the second best performer.

Fourteen stocks lost more than 1/3 of their value:

Most of the worst performers were Canadian licensed producers, which we detailed previously. Green Organic Dutchman (TSX: TGOD) (OTC: TGODF) and Isodiol (CSE: ISOL) (OTC: ISOLF) lost more than half their value as they posted 52-week lows. Green Organic Dutchman saw insider selling ahead of a lock-up expiration for pre-IPO private placement investors as well as selling by Aurora Cannabis (TSX: ACB) (NYSE: ACB). Green Thumb Industries (CSE: GTII) (OTC: GTBIF) declined 38% after having sold shares at C$20 in a bought deal in late September, ending the month at C$14.80. Tilray (NASDAQ: TLRY) lost 34% of its value, ending the month at 94.79, well above the $17 IPO price in July but far below the subsequent high price of $300 in September.

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 six index, the American Cannabis Operator Index, was launched at the end of October and tracks the leading cultivators, processors and retailers of cannabis in the United States.

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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