The Global Cannabis Stock Index Rallies Again in August

Cannabis stocks were sinking during the month, creating a new all-time low intraday of 7.39 for the Global Cannabis Stock Index , but they exploded higher on 8/30 on news that the Department of Health and Human Services had recommended to the DEA that it move cannabis from Schedule 1 to Schedule 3 and extended the gains on 8/31. The index rallied 5.1% to 8.91:

The end of 2022 was challenging, with the index falling 23.7% in Q3 and 13.8% in Q4, which contributed to a 70.4% decline for the full year.  In 2023, Q1 saw a 12.5% decline, and the index, which dropped 11.8% in Q2, is now down 6.4% year-to-date after gaining 21.2% QTD:

Since the peak in February 2021, the Global Cannabis Stock Index has dropped 90.2% from the 92.48 closing high, dropping 9 consecutive quarters:

The strongest 3 names in August all rose by more than 30%:

WM Technology, the strongest stock for the second consecutive month, has rallied 81.5% so far in Q3 and is up year-to-date Trulieve, despite the 45.2% gain in Q3, is still down year-to-date. GTI, up 22.7% now in Q3, is up 8.2% so far in 2023.

The 3 weakest names in August all fell by more than 18%:

Bright Green pulled back sharply for the second straight month, but it is still up in 2023. Scotts Miracle-Gro pulled back after reporting weaker financials than expected, and it remains up year-to-date as well. GrowGeneration, down 4.4% in Q3, is down so far in 2023.

We will summarize the index performance again in a month, when they will be rebalanced. 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 four 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. 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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