As we described in an article released earlier, the Global Cannabis Stock Index moved lower in October, falling 6.6%. It is now up 1.4% in 2024.
In this article, we summarize the performance of the other managed indices that New Cannabis Ventures offers to its readers. We discuss the performance of the American Cannabis Operator Index, Ancillary Cannabis Index and Canadian Cannabis LP Index. The index that had been the strongest since the DEA was asked by the Department of Health & Human Services in late August to reschedule cannabis has been very volatile since then and was quite weak in August but bounced higher last month. In September, though, it led the way. Ancillary, which is the strongest sub-sector in 2024, was relatively strong again.
American Cannabis Stocks Index
The American Cannabis Operator Index was quite strong in January after declining in December, but it plunged in February and then rallied in March and April. In May and June, it was weak, and in July, it lagged other sub-sectors. In August, it got crushed after the DEA delayed rescheduling by announcing a December hearing. The index led the way higher in September as it rose 8.5%, and it led the way lower in October, falling 5.9% to 14.24:
In 2023, the index rallied 7.6% to 15.34 despite the overall weakness in cannabis stocks, and a late January close was the highest close in over a year, but the close in April was higher. In 2024, this index is now down 7.2%:
The index, which launched in October 2018, made an all-time low a year ago in August before soaring. It is still down a lot from when it launched:
The worst performing MSO in October was TerrAscend (OTC: TSNDF) (TSX: TSND), which lost 22.5% as it posted an all-time low price during the last part of the month. Ayr Wellness (OTC: AYRWF) (CSE: AYR.A) was the strongest stock, rising 18.8%.
In November, the index will have 9 members, as Ascend Wellness (OTC: AAWH) (CSE: AAWH.U), the only other MSO to rally during the month, will exit due to low trading volume.
Ancillary Cannabis Index
The Ancillary Cannabis Index was very strong in March but fell slightly in April. In July, it outpaced the other sub-sectors, but it August, it pulled back. In September, it rose 4.0%, and it fell 4.0% in October to 15.47:
After a massive loss of 76.6% in 2022, it declined 10.9% in 2023 to 13.38, which was better than the Global Cannabis Stock Index. It is up 15.6% in 2024:
The index is down almost 85% since launching at the end of March in 2021:
The best performing stock in the index in September was Turning Point Brands (NASDAQ: AFCG), gaining9.5%. The worst stock was Leafly (NASDAQ: MAPS), declining 22.5%.
In November, the index will have the seven members again.
Canadian Cannabis LP Index
The Canadian Cannabis LP Index exploded higher in April from an all-time low set at the end of March and then plunged in May and fell further in June. In July, it posted a gain, but it fell in August and posted a new all-time low. The index moved lower in September, dropping during the month despite the overall cannabis sector advancing. In October, it rallied slightly after making a new all-time low during the month, increasing by 0.3% to 53.21:
The index, which fell 62.8% in 2022, was down 16.2% in 2023 to 60.85, and it is down 12.6% in 2024:
The LP index is down a lot from its peak, which hit more than 5 years ago in early 2018:
The Canadian LPs trade mainly below C$1, with just five of the stocks having a higher price at the end of September. 2 of the 9 stocks in the index closed below C$0.25. During September, Aurora Cannabis (TSX: ACB) (NASDAQ: ACB) dropped 5.3%. Canopy Growth (TSX: WEED) (NASDAQ: CGC) fell 1.8%. Cronos Group (TSX: CRON) (NASDAQ: CRON) slipped 1.7%. Organigram (TSX: OGI) (NASDAQ: OGI) dropped 3.7%. Tilray Brands (TSX: TLRY) (NASDAQ: TLRY) pulled back further with a 4.2% loss.
In November, the index will have the same eight member.
