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%:
After a 26% decline in 2021, the index, which has 26 names, is down 65.7% thus far in 2022:
The index is down substantially from the close on 6/30, falling 23.7% in Q3:
The strongest 4 names in September all fell:
- Innovative Industrial Properties (NYSE: IIPR): -3.5%
- Chicago Atlantic Real Estate Finance (NASDAQ: REFI): -5.6%
- Cronos Group (NASDAQ: CRON) (TSX: CRON): -7.5%
- Turning Point Brands (NYSE: TPB): -9.0%
Innovative Industrial Properties fell the least, but it lost 19.5% during Q3 and is down 66.3% year-to-date. Chicago Atlantic, and IPO from late 2021, fell just 4.3% during Q3 and is down just 13.5% year-to-date. Cronos Group was unchanged during the quarter and is down 28.1% year-to-date. Turning Point Brands, a hybrid business, dropped 21.7% during the quarter and is down 43.8% so far in 2022.
The 4 weakest names in September all declined by over 40%:
- Leafly (NASDAQ: LFLY): -57.0%
- Ayr Wellness (OTC: AYRWF) (CSE: AYR.A): -46.6%
- Hydrofarm (NASDAQ: HYFM): -42.9%
- Trulieve (OTC: TCNNF) (CSE: TRUL): -40.6%
Leafly was the worst stock for the second straight month. It has dropped 93.2% since the end of 2021, when it was trading as a SPAC. In Q3, it dropped 84.9%. Ayr Wellness has lost 84.4% in 2022, and it fell 52.2% in Q3. Hydrofarm, down 93.2% year-to-date, like Leafly, dropped 44.3% during the quarter. Trulieve has declined 67.3% so far in 2022, and it fell 43.9% during Q3.
The index will expand to 28 members in Q4. Leaving the index are two ancillary names, CEA Industries (NASDAQ: CEAD) and Leafly. Both failed to have the minimum $800K of average daily traded value. Leafly was also below the minimum price of $1 as of 9/23, the date we used to rebalance the index, though the 10-day moving average was above it at the time. Note that we changed a rule slightly. Companies that are dual-listed in Canada were required to have average daily U.S. trading value in excess of $500K, but this is now $400K. Joining the index for the first time are BYND Cannasoft Enterprises (NASDAQ: BCAN) (CSE: BYND) and recent IPO Hempacco (NASDAQ: HPCO). Returning are Columbia Care (OTC: CCHWF) (CSE: CCHW) (NEO: CCHW) and SND Inc. (NASDAQ: SNDL).
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.
