Global Cannabis Stocks Decline Almost 5% in June

Cannabis stocks, as measured by the Global Cannabis Stock Index, fell  again in June, declining 4.5% to 100.12, after going into the final week of the month with a small gain:

The index, which had 68 qualifying members that were equally weighted at the time of the prior rebalancing in March, declined 24.5% in the first three months of the year and, after another 7.2% decline in Q2, has now decreased 29.5% in the first half of 2018. Despite the losses, the index is still up more than 76% since bottoming in late October.

Unlike in May, stocks listed primarily on the OTC lagged Canadian stocks, especially the licensed producers. The index ended with 67.4% of the composition in Canada, including 26.3% licensed producers. The three stocks listed on the Australian Stock Exchange accounted for 3.4%.

Eighteen companies posted gains in excess of 5%:

Among the winners, 22nd Century Group (NYSEMKTS: XXII) was the only company not domiciled in the U.S., and it benefited from its addition to the Russell 2000 index during the month. The biggest gainer, Choom Holdings (CSE: CHOO) (OTC: CHOOF) rose following a capital raise in which Aurora Cannabis (TSX: ACB) (OTC: ACBFF) participated. Neptune Technologies & Bioressources (TSX: NEPT) (NASDAQ: NEPT) rallied following announcement of a deal to provide Canopy Growth (TSX: WEED)(NYSE: CGC) with extraction services.

Nineteen companies posted declines in excess of 15%, with sixteen of them having primary listings in Canada:

In June, we conducted the quarterly rebalancing, raising the bar a bit for qualification, including a hike in the minimum price of $0.01 to $0.10 and a minimum average daily trading value in excess of $400,00, up from $300,000. The index now includes 53 companies, with 23 deletions and 8 new names, including CV Sciences (OTC: CVSI), mCig (OTC: MCIG), MedMen Enterprises (CSE: MMEN) (OTC: MMNFF), MariMed (OTC: MRMD), Scythian Biosciences (TSXV: SCYB) (OTC: SCCYF), Speakeasy Cannabis (CSE: EASY) (OTC: SPBBF), The Green Organic Dutchman (TSX: TGOD) (OTC: TGODF) and WeedMD (TSXV: WMD) (OTC: WDDMF). Following the changes,  companies with Canadian primary listings represent 71.7% of the index, including 39.6% that are licensed producers. One Australian company represents 1.9%.

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.

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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