After soaring 62% in Q4 and then increasing almost 28% in January, the Global Cannabis Stock Index gained 17.6% in February to 66.67:
The index, which had 38 qualifying members during the month following the quarterly rebalancing at the end of December, increased 5.2% in 2020 to 44.39 and is now up 50.2% in 2021.
After posting an all-time closing low of 16.95 set on March 18th, the index has rallied sharply to end the month 293.3% higher but still down 63% from its early 2018 closing high at 180.02:
The strongest 4 names in February all gained at least 66%:
- Taat Lifestyle & Wellness (CSE: TAAT) (OTC: TOBAF): +82.2%
- Organigram (TSX: OGI) (NASDAQ: OGI): +65.6%
- Clever Leaves (NASDAQ: CLVR): 48.3%
- Aphria (TSX: APHA) (NASDAQ: APHA): +46.5%
Taat Lifestyle and Wellness, which is focused on tobacco-free alternatives to cigarettes that contain CBD, was last month’s worst performer. During February, it issued 8 immaterial press releases detailing the rollout of its products. Organigram extended gains from January as it benefited from continued interest in Canadian LPs that trade on higher exchanges in the U.S. The stock is up 128% in 2021. Clever Leaves which was unchanged in January, caught up to the market move this month. It began importing CBD into the U.S. and also named a new CFO. Aphria, one of the strongest stocks in January, continued its leadership and is up now 158% year-to-date. During February, it received HSR clearance for its is pending acquisition of Tilray.
The 4 weakest names in February all declined by more than 5%:
- Canopy Growth (TSX: WEED) (NASDAQ: CGC): -18.3%
- Hydrofarm (NASDAQ: HYFM): -15.9%
- Neptune Wellness Solutions (TSX: NEPT) (NASDAQ: NEPT): -11.2%
- Aurora Cannabis (TSX: ACB) (NYSE: ACB): -5.7%
Canopy Growth, which had a strong January, retraced some of its gains, leaving it up 33% year-to-date. The company reported its fiscal Q3 during the month and closed the plan of arrangement with RIV Capital. It also filed a preliminary prospectus for the issuance of up to US$2 billion in equity. Hydrofarm issued guidance for 2020 organic revenue growth of at least 20% during 2021 late in the month. Neptune Wellness released its fiscal Q2 financials, which were worse than expected, and it also raised capital. Aurora Cannabis, which is up 27% year-to-date, reported its fiscal Q2 during the month as well.
We have also published separate reviews of the performance of the Canadian LP Index and the American Cannabis Operators Index:
- Smaller Companies Lead Canadian Cannabis Producer Stock Index 19% Higher in February
- Stocks of American Cannabis Operators Outpace Overall Market With 20.5% Gain in February
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 2018 and tracks the leading cultivators, processors and retailers of cannabis in the United States.
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