New Cannabis Ventures Introduces Ancillary Stock Index

Following up on our recent discussion of how cannabis investors have embraced publicly traded ancillary companies, New Cannabis Ventures launched its seventh proprietary index, the Ancillary Cannabis Index at the end of March.

During its initial month, the index rallied early but ended up declining 4.6% to 95.42:

The index includes companies that provide goods and services to cannabis operators. Each qualifying company must trade at a minimum of $0.50 per share  with a minimum average daily trading value of $500K at the time the index is rebalanced each month. Additionally, members of the index must generate at least $1 million per quarter from its ancillary operations.

During April, the index included 14 members, with four posting gains and five declining by more than 10%, with a median return of -5.9%:

The three strongest performing names during the month are all relatively new to the public markets. Forian (NASDAQ: FORA) reverse-merged with Helix Technologies earlier this year. Hydrofarm (NASDAQ: HYFM) went public through an IPO in December and is up 25% year-to-date. AFC Gamma (NASDAQ: AFCG), a mortgage REIT, went public in March.

The three weakest names included Greenlane (NASDAQ: GNLN)  and KushCo Holdings (OTC: KSHB), which announced a merger agreement in March, and Akerna (NASDAQ: KERN). Greenlane is up 11% in 2021, KushCo Holdings is up 30%, and Akerna is up 30%.

For May, the index will include the same 14 stocks. In the next monthly review, we will summarize the performance for May and discuss any additions or deletions. Be sure to bookmark the page to stay current on ancillary cannabis company 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

Get Our Sunday Newsletter