As we described in a previous article, the Global Cannabis Stock Index moved higher in July, rising 5.9%. It is now up 12.5% 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. This month, ancillary was quite strong.
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, rallying just 0.4% to 15.36 :
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 up 0.1%:
The index, which launched in October 2018, made an all-time low in August before soaring. It is still down a lot from when it launched:
The worst performing MSO in July was Schwazze (OTC: SHWZ) (CSE: SHWZ), which lost 49.9%. Ascend Wellness (OTC: AAWH) (CSE: AAWH.U ) was the strongest stock, rising 19.2%%.
In July, the index will have 12 members, with Schwazze exiting due to its low price and 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, rising 9.6% to 15.71:
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 17.4% in 2024:
The index is down over 84% since launching at the end of March in 2021:
The best performing stock in the index in July was Scotts Miracle-Gro (NYSE: SMG), gaining 20.8%. The worst stock was NewLake Capital (OTC: NLCP), declining less than 0.1%.
In August, the index will have eight members as Leafly (NASDAQ: LFLY) exits.
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 gained 4.3% to 59.93:
The index, which fell 62.8% in 2022, was down 16.2% in 2023 to 60.85, and it is down 1.5% 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 July. 2 of the 9 stocks in the index closed below C$0.25. During July, Aurora Cannabis (TSX: ACB) (NASDAQ: ACB) soared 33.9%. Canopy Growth (TSX: WEED) (NASDAQ: CGC) gained 19.3%. Cronos Group (TSX: CRON) (NASDAQ: CRON) rallied only 6.6%. Organigram (TSX: OGI) (NASDAQ: OGI) lifted 10.4%. Tilray Brands (TSX: TLRY) (NASDAQ: TLRY) experienced a 22.9% gain.
In August, the index will have the same nine members.
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 third 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. Afterwards, 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.
