The Global Cannabis Stock Index Tumbles in March

After a big rally in January to begin the year followed by a moderate loss in February, the Global Cannabis Stock Index plunged 15.2% in March to 8.50:

After falling 23.7% in Q3 and 13.8% in Q4, which were a big part of the 70.4% decline in 2022, the index lost 12.5% in Q1:

Since the peak in February 2021, the Global Cannabis Stock Index has dropped 90.8% from the 92.48 closing high:

The strongest 3 names in March all rose or fell less than 3%:

TerrAscend was among the winners in February. Jazz Pharma, the only name in the index to rally in March, was down 8.1% in Q1. Verano has dropped 6.4%, while TerrAscend has rallied 34.5%.

The 3 weakest names in March all fell by more than 23%:

Ayr Wellness has dropped 45.8% so far in 2023. Canopy Growth, a big winner in January but the worst in February, is now down year-to-date 24.2%. A few weeks ago, we shared a very negative outlook on the stock in our weekly newsletter. WM Technology declined 15.9% in Q1.

For Q2, the index was rebalanced as of the close of business on 3/31. We amended the minimum average daily trading value rule, lowering it from $800K to $500K. Still, three MSOs are leaving the index due to low trading volumes: Ayr Wellness, Columbia Care (OTC: CCHWF) (NEO: CCHW) (CSE: CCHW) and TerrAscend. The index will increase from 25 in Q1 to now 27 with those three deletions offset by five additions: Bright Green (NASDAQ: BGXX), BYND Cannasoft Enterprises (NASDAQ: BCAN) (CSE: BYND), Chicago Capital Real Estate Finance (NASDAQ: REFI), Emerald Holding (NASDAQ: EEX) and NewLake Capital (NASDAQ: NLCP).

We will summarize the index performance again in a month, when we also provide an updated index for Q2. 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 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

Get Our Sunday Newsletter