Some Sectors Soar in January

As we described in a previous article, the Global Cannabis Stock Index lifted in January after having collapsed in December. The index rose 10.1% after a record decline of 70.4% for 2022.

In this exclusive article we will summarize the performance of the other managed indices that New Cannabis Ventures offers to its readers. We will discuss the performance of the American Cannabis Operator Index, Ancillary Cannabis Index and Canadian Cannabis LP Index as well as Canadian Cannabis LP index Tier 1, 2 and 3.

American Cannabis Stocks Index

The American Cannabis Operator Index was the weakest part of the market in January, rising 6.3% to 15.14 after a 40.8% decline in December:

Down 22.9% in Q4 after the collapse in December, it was down 65.8% in 2022 to 14.25, slightly ahead of the Global Cannabis Stock Index:

The index, which launched in October 2018, finally took out the low from March 2020 in late 2022:

During January, there were four double-digit percentage decliners, including Jushi Holdings (OTC: JUSHF) (CSE: JUSH), Columbia Care (OTC: CCHWF) (NEO: CCHW) (CSE: CCHW), Trulieve (OTC: TCNNF) (CSE: TRUL) and Curaleaf (OTC: CURLF) (CSE: CURA). At the same time, three stocks climbed more than 20%, including Planet 13 Holdings (OTC: PLNHF) (CSE: PLTH), Glass House Brands (OTC: GLASF) (NEO: GLAS.A.U) and TerrAscend (OTC: TRSSF) (CSE: TER).

In February, the index will drop from 16 members to 12. The companies that no longer qualified due to low trading volumes are Ascend Wellness (OTC:AAWH) (CSE: AAWH), Charlotte’s Web (OTC: CWBHF) (TSX: CWEB), Schwazze (OTC: SHWZ) (CSSE: SHWZ) and Upexi (NASDAQ: UPXI).

Ancillary Cannabis Index

The Ancillary Cannabis Index was the worst part of the market during 2022, but it fared better than other sub-sectors in December. In January, this was the case as well, with the index rising 15.5% to 17.34:

The index was down 76.6% in 2022, closing at 15.02:

The index is down almost 83% since launching at the end of March in 2021:

During January, 4 stocks surged more than 20%, including Scotts Miracle-Gro (NYSE: SMG), GrowGeneration (NASDAQ: GRWG), WM Technology (NASDAQ: MAPS) and Hydrofarm (NASDAQ: HYFM). The only decliner was Innovative Industrial Properties (NYSE: IIPR).

In February, the index will expand by 2 members to 10. Joining again are Agrify (NASDAQ: AGFY) and AgriFORCE Growing (NASDAQ: AGRI).

Canadian Cannabis LP Index

The Canadian Cannabis LP Index was very strong to begin the year, rising 19.4% in January to 86.64:

The index lost 11.4% during Q4, and it declined 62.8% in 2022 when it closed at 72.59:

It broke to a new all-time low during December, and it is down a lot from the peak:

Canadian Cannabis LP Tier 1 Index

During December, Tier 1, which includes 5 large revenue generators, collapsed 33.6%, and it surged 23.9% in January to 109.24. Tier 1 was down 72.0% in 2022, ending at 88.14. Among Tier 1 companies, HEXO Corp. (TSX: HEXO) (NASDAQ: HEXO) was the best performer again, rising 51.8%. It was the worst performer in December. The worst Tier 1 stock in January was Organigram (TSX: OGI) (NASDAQ: OGI), rising 10.9%.

Canadian Cannabis LP Tier 2 Index

Tier 2 index dropped by 14.8% in December, and it gained 7.5% in January to 118.02. In 2022, it lost 58.9%, closing at 109.79.

Canadian Cannabis LP Tier 3 Index

Tier 3 index dropped 16.2% in December, but it rose 26.1% in January to 22.27. It ended at 17.66 in 2022, declining 62.8% for the year.

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. Afterwards, 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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