As we described in a previous article, the Global Cannabis Stock Index moved lower in September, rising 4.3%. It is now up 8.5% in 2024.
In this article, we summarize the performance of the other managed indices that New Cannabis Ventures offers to its readers. We discuss the performance of the American Cannabis Operator Index, Ancillary Cannabis Index and Canadian Cannabis LP Index. The index that had been the strongest since the DEA was asked by the Department of Health & Human Services in late August to reschedule cannabis has been very volatile since then and was quite weak in August. This month, though, it led the way. Ancillary, which is the strongest sub-sector in 2024, was strong again.
American Cannabis Stocks Index
The American Cannabis Operator Index was quite strong in January after declining in December, but it plunged in February and then rallied in March and April. In May and June, it was weak, and in July, it lagged other sub-sectors. In August, it got crushed after the DEA delayed rescheduling by announcing a December hearing. The index led the way higher in September as it rose 8.5% to 15.13:
In 2023, the index rallied 7.6% to 15.34 despite the overall weakness in cannabis stocks, and a late January close was the highest close in over a year, but the close in April was higher. In 2024, this index is now down 1.4%:
The index, which launched in October 2018, made an all-time low a year ago in August before soaring. It is still down a lot from when it launched:
The worst performing MSO in September was Ascend Wellness (OTC: AAWH) (CSE: AAWH.U), which lost 13.1%. Trulieve (OTC: TCNNF) (CSE: TRUL) was the strongest stock, rising 40.2%%.
In October, the index will have 10 members, as Grown Rogue (OTC: GRUSF) (CSE: GRIN) and Jushi Holdings (OTC: JUSHF) (CSE: JUSH) exit due to low trading volume.
Ancillary Cannabis Index
The Ancillary Cannabis Index was very strong in March but fell slightly in April. In July, it outpaced the other sub-sectors, but it August, it pulled back. In September, it rose 4.0% to 16.12:
After a massive loss of 76.6% in 2022, it declined 10.9% in 2023 to 13.38, which was better than the Global Cannabis Stock Index. It is up 20.5% in 2024:
The index is down almost 84% since launching at the end of March in 2021:
The best performing stock in the index in September was Scotts Miracle-Gro (NASDAQ: AFCG), gaining 22.2%. The worst stock was WM Technology (NASDAQ: MAPS), declining 12.1%.
In October, the index will have the seven members, with Ispire Technology (NASDAQ: ISPR) and Leafly (NASDAQ: LFLY) rejoining and WM Technology (MAPS) exiting.
Canadian Cannabis LP Index
The Canadian Cannabis LP Index exploded higher in April from an all-time low set at the end of March and then plunged in May and fell further in June. In July, it posted a gain, but it fell in August and posted a new all-time low. The index moved lower in September, dropping for the month by 3.8% to 53.03:
The index, which fell 62.8% in 2022, was down 16.2% in 2023 to 60.85, and it is down 12.9% in 2024:
The LP index is down a lot from its peak, which hit more than 5 years ago in early 2018:
The Canadian LPs trade mainly below C$1, with just five of the stocks having a higher price at the end of September. 2 of the 9 stocks in the index closed below C$0.25. During September, Aurora Cannabis (TSX: ACB) (NASDAQ: ACB) dropped 2.6%. Canopy Growth (TSX: WEED) (NASDAQ: CGC) fell 7.7%. Cronos Group (TSX: CRON) (NASDAQ: CRON) slipped 1.3%. Organigram (TSX: OGI) (NASDAQ: OGI) dipped 1.2%. Tilray Brands (TSX: TLRY) (NASDAQ: TLRY) bounced from a terrible August with a 4.8% gain.
In October, the index will have the same eight members, as Adastra Holdings (CSE: XTRX) has exited due to its low price.
