October Decline Leaves Global Cannabis Stock Index Down 7.5% in 2021

The Global Cannabis Stock Index fell for the eighth consecutive month, declining 8.8% to 41.06:

The index, which was down 21.2% in Q3, had 43 qualifying members during the month following the quarterly rebalancing at the end of September, though Harvest Health and Recreation was removed early in the month after its acquisition by Trulieve closed. After increasing 5.2% in 2020 to 44.39, it is now down 7.5% in 2021. It has declined 55.6% from its 2021 closing high of 92.48 on February 10th but has gained 38.3% over the past year:

After posting an all-time closing low of 16.95 set on March 18, 2020, the index has rallied sharply to end the month 142% higher but still down 77% from its early 2018 closing high at 180.02:

The strongest 4 names in October all gained at least 8%:

Despite its rally in October, AgriForce ended the month 39% below its $5 July IPO price. Grove Inc. ended the month 18% above its June $5 IPO price. Innovative Industrial Properties extended on its 2021 gains and is now up nearly 44% this year. AFC Gamma ended the month 23% above its March $19 IPO price.

The 4 weakest names in October all declined by more than 22%:

Greenlane has declined 57% in 2021, while GTI has dropped 16%. Flora Growth has lost 14% since its $5 IPO in May. Columbia Care has declined 50% in 2021 thus far.

We have also published separate reviews of the performance of the Canadian LP Index , the American Cannabis Operators Index and the Ancillary Cannabis Index:

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 seven 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. More recently, we introduced the Ancillary Cannabis Index at the end of March 2021, reflecting the increasing number of publicly-traded companies providing goods or services to cannabis operators.

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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