Ancillary Cannabis Stocks Perform Best Again

As we described in a previous article, the Global Cannabis Stock Index moved lower in August, falling 7.5%. It is now up 4.1% 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, ancillary was relatively 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 was hanging in but got crushed in the end after the DEA delayed rescheduling by announcing a December hearing. The index fell 9.2% to 13.94:

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 9.1%:

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 August was Curaleaf (OTC: CURLF) (TSX: CURA), which lost 28.0% after reporting a worse-than-expected Q2 and replacing its CEO. Planet 13 (OTC: PLNH) (CSE: PLTH) was the strongest stock,  rising 20.1%%.

In September, the index will have the same 12 members.

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, rising 9.6%, and it fell 1.3% in August to 15.50:

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 15.8% in 2024:

The index is down over 84% since launching at the end of March in 2021:

The best performing stock in the index in August was AFC Gamma (NASDAQ: AFCG), gaining 16.6%. The worst stock was GrowGeneration (NASDAQ: GRWG), declining 15.6%.

In September, the index will have the same eight members.

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, dropping for the month by 8.0% to 55.12:

The index, which fell 62.8% in 2022, was down 16.2% in 2023 to 60.85, and it is down 9.4% 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 July. 2 of the 9 stocks in the index closed below C$0.25. During August, Aurora Cannabis (TSX: ACB) (NASDAQ: ACB) dropped 3.4%. Canopy Growth (TSX: WEED) (NASDAQ: CGC) plunged 33.2%. Cronos Group (TSX: CRON) (NASDAQ: CRON) fell 10.9%. Organigram (TSX: OGI) (NASDAQ: OGI) lifted 6.4%. Tilray Brands (TSX: TLRY) (NASDAQ: TLRY) experienced a 17.2% loss.

In September, the index will have the same nine members.

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