After a 57.4% gain in Q1 followed by a 28.0% pullback in Q2 and 13.8% decline in July, Cannabis stocks, as measured by the Global Cannabis Stock Index, moved sharply lower again in August, declining 12.6% to 63.40:

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 just 6.1% since the 2018 low set on December 24th. Global cannabis stocks have lost 1.0% in 2019:

4 names gained more than 10% during August:

• 22nd Century Group (NYSE American: XXII): +23.2%
• Aphria (TSX: APHA) (NYSE: APHA): +16.4%
• PharmaCielo (TSXV: PCLO) (OTC: PHCEF): +12.5%
• Green Organic Dutchman (TSX: TGOD) (OTC: TGODF): +10.2%

22nd Century fell sharply when its CEO suddenly departed in late July but recovered in August after its new CEO shared his vision and also purchased stock on the open market. Aphria rallied after its Q4 earnings release. PharmaCielo bounced back after being one of the worst performers in July.

4 names fell by more than 30% during August:

• Acreage Holdings (CSE: ACRG) (OTC: ACRGF): -41.8%
• Flowr Corporation (TSXV: FLWR) (OTC: FLWPF): -39.4%
• Tilray (NASDAQ: TLRY): -37.1%
• Elixinol Global (ASX: EXL) (OTC: ELLXF): -31.9%

Acreage Holdings continued its sell-off, which began after shareholders received the payment from Canopy Growth in late May. Flowr was pressured by a capital raise. Investors sold Tilray off sharply after its Q2 financials. Elixinol Global has been under pressure since releasing its Q2 financials in late July that showed tepid growth and mounting losses.

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

• Canadian LP Index Tests December Lows in August
• American Cannabis Operators Index Stumbles Again in August

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