After a 57.4% gain in Q1 followed by a 28.0% pullback in Q2, Cannabis stocks, as measured by the Global Cannabis Stock Index, moved sharply lower in July, declining 13.8%:

The index, which had 52 qualifying members during the month following the quarterly rebalancing at the end of June, declined 54.9% in 2018 but has rallied 21.4% since the 2018 low set on December 24th through month-end. Global cannabis stocks have gained 13.4% in 2019 despite the gyrations in the market:4 names gained more than 10% during July:

• Neptune Wellness Solutions (TSX: NEPT) (NASDAQ: NEPT): +31.5%
• Charlotte’s Web (TSX: CWEB) OTC: CWBHF): +20.5%
• Scotts Miracle-Gro (NYSE: SMG): +13.9%
• Curaleaf Holdings (CSE: CURA) (OTC: CURLF): +10.2%

Neptune priced an equity offering and then rallied sharply. Charlotte’s Web was apparently recommended by a popular newsletter and expanded distribution with Kroger Stores. Scotts Miracle-Gro moved to an all-time high after reporting earnings that were helped by improvement in its Hawthorne Gardening Company division as the California market improved. Curaleaf rallied after it announced a substantial pending acquisition of a private multi-state cannabis operator, GrassRoots Cannabis.

5 names fell by more than 30% during July:

• CannTrust (TSX: TRST) (NYSE: CTST): -53.2%
• Akerna (NASDAQ: KERN): -50.0%
• PharmaCielo (TSXV: PCLO) (OTC: PHCEF): -37.6%
• Body and Mind (CSE: BAMM) (OTC: BMMJ): -33.2%
• TILT Holdings (CSE: TILT) (OTC: SVVTF): -32.2%

CannTrust was crushed following revelations that it violated Health Canada rules by growing in rooms, now licensed, before official approval. Akerna imploded after a big run-up in June following the closing of the acquisition of MJ Freeway and name and symbol change. There was no news to explain the decline in Pharmacielo or Body and Mind. TILT Holdings announced a $125 million convertible note financing.

We have also published separate reviews of the performance of the American Cannabis Operators Index:

• American Cannabis Operators Index Suffers Sharp Decline in July
• Dual Shocks Crush Canadian LP Stock Index by 11.4% in July

We will summarize the index performance again in a month. 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 six 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 and its three sub-indices. The sixth index, the American Cannabis Operator Index, was launched at the end of October and tracks the leading cultivators, processors and retailers of cannabis in the United States.

Exclusive article by Alan Brochstein, CFA

Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email