Cannabis stocks, as measured by the Global Cannabis Stock Index, bounced back sharply from Q4 losses of 44.2%, rallying 44.2% in January to 92.33:
The index, which had 43 qualifying members after the rebalancing at the end of December, declined 54.9% in 2018 but has rallied 54.5% since the 2018 low set on December 24th:
Leading the way, all with returns in excess of 80%, were:
- Khiron Life Sciences (TSXV: KHRN) (OTC: KHRNF), +95.5%
- Canopy Rivers (TSXV: RIV) (OTC: CNPOF), +94.0%
- Cronos Group (TSX: CRON) (NASDAQ: CRON), +89.4%
- Canopy Growth (TSX: WEED) (NYSE: CGC), +82.3%
- Emblem (TSXV: EMC) (OTC: EMMBF), +81.3%
Khiron announced an acquisition that will allow the country to enter the market in Uruguay, driving the stock to an all-time high. Canopy Growth entered the U.S. industrial hemp market, obtaining a license in the state of New York. Emblem agreed to merge with Canadian LP Aleafia (TSXV: ALEF) (OTC: ALEAF).
Only three names failed to achieve double-digit returns in January:
- 22nd Century Group (NYSE American: XXII), -10.0%
- KushCo Holdings (OTC: KSHB), +1.3%
- Auxly Group (TSXV: XLY) (OTC: CBWTF), +8.2%
The only substantive news for the laggards was the equity offering by KushCo Holdings as well as its FY19-Q1 earnings. Following the financial report, the stock rally to the highest levels in almost a year before it was depressed by the equity offering.
Note that due to its pending asset sale to iAnthus Capital (CSE: IAN) (OTC: ITHUF), MPX Bioceutical (CSE: MPX) (OTC: MPXEF) was removed from the index at the close on January 31st, leaving 42 names for the balance of the quarter.
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 sixth 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.
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