Down a Lot But Not Out

You’re reading a copy of this week’s edition of the New Cannabis Ventures weekly newsletter, which we have been publishing since October 2015. The newsletter includes unique insight to help our readers stay ahead of the curve as well as links to the week’s most important news.

Friends,

After the horrible year the cannabis sector had in 2022, many had hoped for a better 2023. Well, it has been better, but it has not been good at all. The New Cannabis Ventures Global Cannabis Stock Index is down 20.5% year-to-date after the bigger decline in 2022. Since the bear market began in early 2021, the index has dropped 91.6%:

Today, we want to review the big decliners that are in the index currently. Of the 28 names that qualified at the end of September for inclusion, 8 are down more than 40%:

While not all of these should be bought by investors right now in our view, several are included in my model portfolio at 420 Investor. I have written on Seeking Alpha about each of these stocks, including Cannabist, Hydrofarm, Organigram and Village Farms. We have already warned not to buy the Canopy Growth dip.

What’s nice about this is that each of the major sub-sectors of the cannabis industry is represented in this list of big decliners, with 4 Canadian LPs, an ancillary company and an MSO. Be aware that the NASDAQ minimum price of $1 could be a problem for all of these stocks except for CBSTF, which trades on the OTC.

The bear market in cannabis stocks has been deep and has lasted for a long time. Four of the stocks that are down a lot more than the market this year look attractive to us. Remember in early March, when we shared “Down But Not Out“, Ayr Wellness was leading the way down, falling 38.4%. It is now up 79.2% in 2023. We don’t believe that stocks should be bought just because they are down, but some of these, all of which are down more than the worst return year-to-date in early March, look very appealing.

Like this newsletter? Sign up, and you will receive a free copy by email each Sunday morning. Each week, we share the top stories and write an original perspective as well.

New Cannabis Ventures publishes curated articles as well as exclusive news. Here is some of the most interesting business content from this week:

Exclusives

Financial Reports

AYR Wellness Q3 Revenue Falls Short of Projections

Cannabist Q3 Was Flat Sequentially

Cresco Labs Q3 Revenue Declines Less Than Expected

To get real-time updates download our free mobile app for Android or Apple devices, like our Facebook page, or follow Alan on Twitter. Share and discover industry news with like-minded people on the largest cannabis investor and entrepreneur group on LinkedIn.

Use the suite of professionally managed NCV Cannabis Stock Indices to monitor the performance of publicly-traded cannabis companies within the day or over longer time-frames. In addition to the comprehensive Global Cannabis Stock Index, we offer the Canadian Cannabis LP Index, the American Cannabis Operator Index and the Ancillary Cannabis Index.

View the Public Cannabis Company Revenue & Income Tracker, which ranks the top revenue producing cannabis stocks.

Stay on top of some of the most important communications from public companies by viewing upcoming cannabis investor earnings conference calls.

Discover upcoming new listings with the curated Cannabis Stock IPOs and New Issues Tracker.

Sincerely,

Alan & Joel

Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email