As we described in an article released earlier, the Global Cannabis Stock Index moved lower in November, falling 9.5%. It is now down 8.3% 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 down in October and hammered in November. 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, and it led the way lower in October. It plunged in November, falling 32.0% to 9.68:
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 36.9%:
The index, which launched in October 2018, made an all-time low a year ago in August before soaring. It posted a new all-time low in November and is down a lot from when it launched:
The worst performing MSO in November was Ayr Wellness (OTC: AYRWF) (CSE: AYR.A), which lost 69.0% as it neared its all-time low price during the month. Glass House Brands (OTC: GLASF) (NEO: GLAS.A.U) was the strongest stock, falling 7.2%.
In December, the index will have 12 members, as Ascend Wellness (OTC: AAWH) (CSE: AAWH.U), Grown Rogue (OTC: GRUSF) (CSE: GRIN) and Jushi Holdings (OTC: JUSHF) (CSE: JUSH) rejoin.
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 pulled back in August. It fell just 0.3% in November to 15.43:
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 November was Turning Point Brands (NASDAQ: AFCG) again, gaining 31.1%. This diversified company is up a lot in 2024. The worst stock was Innovative Industrial Properties (NYSE: IIPR), declining 15.6%.
In December, the index will have the nine members again, as WM Technology (NASDAQ: MAPS) enters again and Leafly (NASDAQ: LFLY) departs due to low trading volume.
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, but it moved modestly higher in October. In November, it set another all-time low during the month, decreasing by 9.1% to 48.35:
The index, which fell 62.8% in 2022, was down 16.2% in 2023 to 60.85, and it has declined 20.5% 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 15.3%. Canopy Growth (TSX: WEED) (NASDAQ: CGC) fell 15.0%. Cronos Group (TSX: CRON) (NASDAQ: CRON) slipped 1.0%. Organigram (TSX: OGI) (NASDAQ: OGI) dropped 10.0%. Tilray Brands (TSX: TLRY) (NASDAQ: TLRY) pulled back to a new all-time low with a 16.7% loss.
In December, the index will increase to nine members with the return of Adastra Holdings (CSE: XTRX).
