Cannabis stocks, as measured by the Global Cannabis Stock Index, exploded higher in late August 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 the move continued into September. October wiped out the entire rally, and November and December saw the market recover some of the losses. In January, the rally continued, but it stalled in February. In March, the index rose 19.5% sequentially to 10.22. In April, it soared on the last day to finish the month up 14.7% sequentially at 11.72:
In 2023, Q1 saw a 12.5% decline, and the index dropped 11.8% in Q2. The 22.3% gain in Q3 was the first positive quarter since Q1 of 2021, and Q4 saw it lose 11.6%. The index ended 2023 down 16.5% to 8.11, and it is up 44.5% so far in 2024:
Since the peak in February 2021, the Global Cannabis Stock Index has dropped 87.3% from the 92.48 closing high:
The strongest 3 names in April all rose by more than 53%:
- Aurora Cannabis (NASDAQ: ACB) (TSX: ACB): +110.3%
- Canopy Growth (NASDAQ: CGC) (TSX: WEED): +72.4%
- Kaival Brands Innovation (NASDAQ: KAVL): +53.4%
The Canadian LPs were very strong in March and then again this month. Aurora Cannabis, which just joined the index this month, is up 93.8% so far in 2024. Canopy Growth has gained 191.4%. Kaival Brands, another addition this past month, is up 7.1% so far this year.
The 3 weakest names in April all fell by more than 8.1%:
- Ispire Technology (NASDAQ: ISPR): -15.7%
- Lexaria (NASDAQ: LEXX): -14.9%
- Scotts Miracle-Gro (NYSE: SMG): -8.1%
Ispire was the weakest for the second consecutive month, and it has dropped 57.2% in 2024. Lexaria, which just joined the index, has rallied 147.2% so far this year. Scotts Miracle-Gro, which reports its fiscal Q2 on 5/1, has gained 7.5% in 2024.
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.
