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 and December saw the market recover some of the losses. In January, the rally continued, but it stalled in February. In March, the index rose 19.5% sequentially to 10.22. In April, it soared on the last day to finish the month up 14.7% sequentially at 11.72. Well, despite good news from the DEA, the index sank in May, plunging 19.4% to 9.45:
In 2023, the index ended down 16.5% to 8.11. In Q1, it rose 26.0%, and it is down 7.5% in Q2 so far. The index is up 16.5% so far in 2024:
Since the peak in February 2021, the Global Cannabis Stock Index has dropped 89.8% from the 92.48 closing high:
The strongest 3 names in May all rose by more than 13%:
- Ispire Technology (NASDAQ: ISPR): +36.6%
- Lexaria (NASDAQ: LEX): +25.9%
- Turning Point Brands (NYSE: TPB): +13.8%
Ispire Technology has now gained 4.1% in Q2. Lexaria, which also recently joined the index, was down sharply in April and is up 7.2% now in Q2. Turning Point Brands is up 12.0% in Q2.
The 3 weakest names in May all fell by more than 40%:
- Kaival Brands Innovation (NASDAQ: KAVL):: -72.4%
- Canopy Growth (NASDAQ: CGC) (TSX: WEED): -42.7%
- Cannabist (OTC: CBSTF) (NEO: CBST): -40.3%
Kaival Brands was one of the stronger names in April, and it is now down 57.6% in Q2. Canopy Growth was the second strongest name in April, and it is now down 1.2% in Q2. Cannabist is down 33.4% in Q2.
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.
