After beginning the year with a 57.4% gain in Q1, the Global Cannabis Stock Index moved sharply lower again in November, its eighth consecutive monthly decline, as it lost 12.0% to 41.74:
The index, which had 44 qualifying members during the month following the quarterly rebalancing at the end of September, declined 54.9% in 2018 and has now lost 34.8% as of the end of November:
The decline left the index at levels not seen in over three years, down almost 77% from its early 2018 closing high at 180.02 but up 3.9% from its closing low on November 18th at 40.19:
5 names gained more than 10% during November:
- Curaleaf Holdings (CSE: CURA) (OTC: CURLF): +27.6%
- Trulieve (CSE: TRUL) (OTC: TCNNF): +26.8%
- Planet 13 Holdings (CSE: PLTH) (OTC: PLNHF): +17.3%
- Valens GroWorks (TSXV: VGW) (OTC: VGWCF): +13.0%
- Green Thumb Industries (CSE: GTII) (OTC: GTBIF): +10.3%
Strength among MSOs was a key trend during the month, with four of the top performers from this sub-sector, each reporting financial results during the month. Curaleaf Q3 revenue was slightly lower than expected but grew 27% from Q2. Trulieve, the second biggest gainer for the second consecutive month, generated Q3 revenue of $70.7 million, ahead of expectations and up 22% from Q2, maintaining its leadership among MSOs. Planet 13 reacted poorly to its Q3 report that showed revenue growth of just 1% from Q2, but it held a large portions of the gains from earlier in the month. GTI beat analyst forecasts, reporting Q3 revenue that was just behind the leader at $68 million and up 52% from Q2. Valens GroWorks didn’t release any substantive news during November, but its performance extended gains in October that followed its fiscal Q3 earnings release.
5 names fell by more than 30% during November:
- MedMen Enterprises (CSE: MMEN) (OTC: MMNFF): -55.3%
- Emerald Health (TSXV: EMH) (OTC: EMTHF): -48.4%
- 22nd Century Group (NYSE American: XXII): -45.5%
- CV Sciences (OTC: CVSI): -41.5%
- Aurora Cannabis (TSX: ACB) (NYSE: ACB): -30.4%
MedMen sunk after announcing layoffs and a plan to achieve profitability, with the stock eroding further after its fiscal Q1 financials showed sequential revenue growth of just 5%. Emerald Health raised a small amount of capital during the month and became entangled in a legal dispute with its Pure SunFarms JV partner, Village Farms. 22nd Century Group was hit hard by news that the FDA would delay rules on low nicotine for cigarette manufacturers. CV Sciences experienced a 25% decline from the prior quarter and a 7% decline from its year ago revenue in the CBD market. Aurora Cannabis reported a 24% sequential decline in revenue and allowed early conversion of its convertible debentures, which weighed on its stock late in the month.
We have also published separate reviews of the performance of the Canadian LP Index and the American Cannabis Operators Index:
- Canadian Cannabis Licensed Producer Index Sinks 16% in November
- American Cannabis Operator Index Outperforms the Broad Sector Again
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 last year and tracks the leading cultivators, processors and retailers of cannabis in the United States.
