Cannabis stocks , as measured by the Global Cannabis Stock Index, 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 they ended up rallying for the entire month of August. They extended the gains in September, rising 2.9% to 9.17:
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. With the 22.3% gain in Q3, the index is still down 5.6% year-to-date:
Q3 was the first positive quarter since Q1 of 2021. Since the peak in February 2021, the Global Cannabis Stock Index has dropped 90.1% from the 92.48 closing high:
The strongest 3 names in September all rose by more than 28%:
- Canopy Growth (NASDAQ: CGC) (TSX: WEED): +36.8%
- Verano Holdings (OTC: VRNOF) (CSE: VRNO): +29.4%
- Cresco Labs (OTC: CRLBF) (CSE: CL): +28.5%
Canopy Growth soared during the month, and it more than doubled in Q3. It is still down 66.1% year-to-date. Verano expanded by 54.2% for the quarter and is up 45.8% so far in 2023. Cresco Labs rose 34.9% in Q3.
The 3 weakest names in September all fell by more than 13%:
- Tilray Brands (NASDAQ: TLRY) (TSXL TLRY): -19.3%
- Bright Green (NASDAQ: BGXX): –15.3%
- Innovative Industrial Properties (NYSE: IIPR): -13.3%
Tilray Brands led the way lower, but it rallied 53.2% during Q3. Bright Green, which was one of the weakest in August, dropped 60.8% in Q3. Innovative Industrial Properties rose 3.6% in Q3.
For Q4, the index will be larger, rising to 28 companies. Newly added names include Akanda (NASDAQ: AKAN), The Cannabist Company (OTC: CBSTF) (NEO: CBST), High Tide (NASDAQ: HITI) (TSXV: HITI), NewLake Capital (OTC: NLCP), Organigram (NASDAQ: OGI) (TSX: OGI), Planet 13 (OTC: PLNH) (CSE: PLTH), TerrAscend (OTC: TSNDF) (TSX: TSND), Village Farms (NASDAQ: VFF) and 22nd Century Group (NASDAQ: XXII). Two names were removed due to their failure to hit the minimum daily trading value required, Bright Green (NASDAQ: BGXX) and Emerald Holding (NYSE: EEX).
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.