Cannabis stocks began the year with a bounce that ended quickly, and during June the Global Cannabis Stock Index fell again, dropping 2.2% to 7.50 with a 7.39 intraday all-time low and a 7.41 closing low late in the month:
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 22.8% year-to-date:
Since the peak in February 2021, the Global Cannabis Stock Index has dropped 91.9% from the 92.48 closing high, dropping 9 consecutive quarters:
The strongest 3 names in June all rose by more than 12%:
- Emerald Holding Company (NYSE: EEX): +16.1%
- Turning Point Brands (NYSE: TPB): +14.7%
- Cronos Group (NASDAQ: CRON) (TSX: CRON): +12.6%
Emerald Holding, which owns MJBizDaily, was up 10.2% in Q2. Turning Point Brands rallied 14.3% in Q2. Cronos Group managed a 1.5% gain for the quarter, a very tough one for its peers.
The 3 weakest names in June all fell by more than 26%:
- Canopy Growth (NASDAQ: CGC) (TSX: WEED): -53.5%
- 22nd Century Group (NASDAQ: XXII): -38.4%
- HEXO Corp: -26.4% (when removed)
Canopy Growth had a horrible month, and it had a horrible quarter, falling 77.8%. The stock is down 83.2% in 2023. 22nd Century Group lost over half its value in Q2. HEXO Corp., which was acquired by Tilray late in the month, posted a new all-time low before that close.
For Q3, the index constituents will drop from 27 companies to just 21. Six companies are being removed, and none are being added. Falling out due to too low of a price are 22nd Century Group (NASDAQ: XXII) and Organigram (NASDAQ: OGI) (TSX: OGI). Low volumes forced the removals of BYND Cannasoft Enterprises (NASDAQ: BCAN) (CSE: BYND), NewLake Capital Partners (OTC: NLCP) and Village Farms (NASDAQ: VFF). HEXO Corp. was removed in late June following its acquisition.
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 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.