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 saw the market recover some of the losses, rising 8.1% to 7.76:
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. The 22.3% gain in Q3 was the first positive quarter since Q1 of 2021. With the November gain, the index is now down 20.1% year-to-date:
Since the peak in February 2021, the Global Cannabis Stock Index has dropped 91.6% from the 92.48 closing high:
The strongest 4 names in November all rose by more than 25%:
- Cresco Labs (OTC: CRLBF) (CSE: CL): +32.9%
- GrowGeneration (NASDAQ: GRWG): +30.4%
- Verano Holdings (OTC: VRNOF) (NEO: VRNO): +27.5%
- Green Thumb Industries (OTC: GTBIF) (CSE: GTII): +25.9%
All of these are MSOs except for GrowGeneration, which is down 32.1% so far in 2023. The MSOs are mixed, with Cresco Labs down and the other two up.
The 4 weakest names in November all fell by more than 14%:
- 22nd Century Group (NASDAQ: XXII): -42.1%
- WM Technology (NASDAQ: MAPS): -23.7%
- Cannabist (OTC: CBSTF) (NEO: CBST): -14.6%
- Hydrofarm (NASDAQ: HYFM): -14.6%
The worst performers were from a variety of cannabis sub-categories. 22nd Century Group was one of the worst performers for the second consecutive month as was MSO Cannabist, formerly Columbia Care. The other two companies are ancillaries. All of these are down in 2023.
We will summarize the index performance again in a month and also provide the quarterly revisions to the constituents. 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.
