The Worldwide Cannabis Stock Index Loses 12% in November In spite of Mid-Month Bounce – New Cannabis Ventures

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Just after starting the year with a 57.four% get in Q1, the Global Cannabis Stock Index moved sharply reduced once again in November, its eighth consecutive month-to-month decline, as it lost 12.% to 41.74:

The index, which had 44 qualifying members for the duration of the month following the quarterly rebalancing at the finish of September, declined 54.9% in 2018 and has now lost 34.eight% as of the finish of November:

The decline left the index at levels not noticed in more than 3 years, down practically 77% from its early 2018 closing higher at 180.02 but up three.9% from its closing low on November 18th at 40.19:

five names gained additional than 10% for the duration of November:

Strength amongst MSOs was a crucial trend for the duration of the month, with 4 of the leading performers from this sub-sector, each and every reporting monetary final results for the duration of the month. Curaleaf Q3 income was slightly reduced than anticipated but grew 27% from Q2. Trulieve, the second largest gainer for the second consecutive month, generated Q3 income of $70.7 million, ahead of expectations and up 22% from Q2, sustaining its leadership amongst MSOs. Planet 13 reacted poorly to its Q3 report that showed income development of just 1% from Q2, but it held a significant portions of the gains from earlier in the month. GTI beat analyst forecasts, reporting Q3 income that was just behind the leader at $68 million and up 52% from Q2. Valens GroWorks didn’t release any substantive news for the duration of November, but its functionality extended gains in October that followed its fiscal Q3 earnings release.

five names fell by additional than 30% for the duration of November:

MedMen sunk just after announcing layoffs and a strategy to realize profitability, with the stock eroding additional just after its fiscal Q1 financials showed sequential income development of just five%. Emerald Overall health raised a modest quantity of capital for the duration of the month and became entangled in a legal dispute with its Pure SunFarms JV companion, Village Farms. 22nd Century Group was hit difficult by news that the FDA would delay guidelines on low nicotine for cigarette suppliers. CV Sciences seasoned a 25% decline from the prior quarter and a 7% decline from its year ago income in the CBD industry. Aurora Cannabis reported a 24% sequential decline in income and permitted early conversion of its convertible debentures, which weighed on its stock late in the month.

We have also published separate testimonials of the functionality of the Canadian LP Index and the American Cannabis Operators Index:

We will summarize the index functionality once again in a month. You can understand additional about the index members and the qualifications for inclusion by going to the Global Cannabis Stock Index. Be positive to bookmark the web page to remain existing on cannabis stock price tag movements inside the day or from day-to-day.

New Cannabis Ventures maintains six proprietary indices designed to aid investors monitor the publicly-traded cannabis stocks, which includes the Worldwide Cannabis Stock Index as effectively as the Canadian Cannabis LP Index and its 3 sub-indices. The sixth index, the American Cannabis Operator Index, was launched at the finish of October final year and tracks the top cultivators, processors and retailers of cannabis in the United States.

Get ahead of the crowd by signing up for 420 Investor, the biggest &amp most complete premium subscription service for cannabis traders and investors given that 2013.

Alan Brochstein, CFA
Primarily based in Houston, Alan leverages his expertise as founder of on-line communities 420 Investor, the very first and nonetheless biggest due diligence platform focused on the publicly-traded stocks in the cannabis business. With his comprehensive network in the cannabis neighborhood, Alan continues to come across new approaches to connect the business and facilitate its sustainable development. At New Cannabis Ventures, he is accountable for content material improvement and strategic alliances. Prior to shifting his concentrate to the cannabis business in early 2013, Alan, who started his profession on Wall Street in 1986, worked as an independent analysis analyst following more than two decades in analysis and portfolio management. A prolific writer, with more than 650 articles published given that 2007 at Looking for Alpha, exactly where he has 70,000 followers, Alan is a frequent speaker at business conferences and a frequent supply to the media, which includes the NY Instances, the Wall Street Journal, Fox Organization, and Bloomberg Television. Get in touch with Alan: Twitter | Facebook | LinkedIn | E mail

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