After breaking a long negative streak in July of 17 straight months down and then a rally of 4.3%, the Global Cannabis Stock Index fell 1.3% in August. In September, it posted a new all-time closing low on 9/30 at 11.26 and ended the month down 25.9%. In October, the index lifted sharply, rising 17.1% to 13.18:
After falling 23.7% in Q3, the index, after the October bounce, is now down 59.9% in 2022:
Since the peak in February 2021, the Global Cannabis Stock Index has dropped 83.7% from the 81.01 closing high:
The strongest 4 names in October all rose at least 37%:
- Ayr Wellness (OTC: AYRWF) (CSE: AYR.A): +70.5%
- Tilray Brands (NASDAQ: TLRY) (TSX: TLRY): +48.0%
- 22nd Century Group (NASDAQ: XXII) : +41.3%
- Trulieve Cannabis (OTC: TCNNF) (CSE: TRUL): +37.1%
Ayr Wellness had a great month, but it was down more than 46% in September and remains down 73.4% year-to-date. Tilray Brands has declined 42.1%. 22nd Century Group is now down 57.7% year-to-date. Trulieve, one of the weakest names in September at -40.6%, has dropped 55.2% this year.
The 4 weakest names in October all declined except for the 4th worst, which rallied 1%:
- Bright Green (NASDAQ: BGXX): -44.1%
- AgriFORCE Growing Systems (NASDAQ: AGRI): -18.0%
- Hempacco (NASDAQ: HPCO): -13.8%
- BYND Cannasoft Enterprises (NASDAQ: BCAN) (CSE: BYND): +1.0%
All four of the weakest stocks trade on the NASDAQ and are relatively new. We think this is a great reminder to be careful with new stocks in the cannabis sector. Bright Green, an $8 Direct Listing in May that soared initially, is now down 92.5% from that price. AgriFORCE, a 2021 $5 IPO, is down a lot more from then than its 2022 year-to-date decline of 40.9%. Hempacco, spun out of an OTC sub-penny stock, has crashed since it began trading. This was its first month as a member of the index, which was the case for BYND Cannasoft Enterprises as well.
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. A more complete analysis of the index is available at 420Investor.com.
New Cannabis Ventures maintains seven 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 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.
