One Cannabis Sub-Sector Fell in April

As we described in a previous article, the Global Cannabis Stock Index exploded higher in April, rallying 14.6%. It is now up 44.4% 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 has 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. This month, two indices rose and one fell.

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. In April, it rose 17.7% to 24.37 :

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. In 2024, this index is now up 58.9%, with a new 52-week closing high:

The index, which launched in October 2018, made an all-time low in August before soaring. It is still down a lot from when it launched:

The best performing MSO in April was Glass House Brands (OTC: GLASF) (NEO: GLAS.A.U), which gained 29.1%. Green Thumb Industries (OTC: GTBIF) (CSE: GTII) and Verano Holdings (OTC: VRNOF) (CSE: VRNO) were the weakest stocks, rising 5.7%.

In May, the index will have 12 members, with MariMed leaving.

Ancillary Cannabis Index

The Ancillary Cannabis Index was very strong in March, but it fell 1.2% in April to 15.04:

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 12.4% in 2024:

The index is down almost 85% since launching at the end of March in 2021:

The best performing stock in the index in April was Turning Point Brands (NYSE: TPB), gaining 14.0%. The worst stock was Scotts Miracle-Gro (NYSE: SMG), declining 8.1%.

In May, the index will have eight members as WM Technology (NASDAQ: MAPS) rejoins.

Canadian Cannabis LP Index

The Canadian Cannabis LP Index exploded higher in April from an all-time low set at the end of March. In April, it gained 14.5% to 82.33:

The index, which fell 62.8% in 2022, was down 16.2% in 2023 to 60.85, and it is up 35.3% 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 April. 3 of the 10 stocks in the index closed below C$0.25. During April, Aurora Cannabis (TSX: ACB) (NASDAQ: ACB) increased 113.3%. Canopy Growth (TSX: WEED) (NASDAQ: CGC) rallied 75.4%. Cronos Group (TSX: CRON) (NASDAQ: CRON) gained 14.1%. Tilray Brands (TSX: TLRY) (NASDAQ: TLRY) experienced a 2.7% gain, and Organigram (TSX: OGI) (NASDAQ: OGI) increased only 1.0%.

In May, the index will again have 10 members, as 1 name that traded below $0.10 on 4/26 has been removed. MTL Cannabis (CSE: MTLC) has joined.

New Cannabis Ventures maintains four 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. The third index, the American Cannabis Operator Index, was launched at the end of October 2018 and tracks the leading cultivators, processors and retailers of cannabis in the United States. Afterwards, we introduced the Ancillary Cannabis Index at the end of March 2021, reflecting the increasing number of publicly-traded companies providing goods or services to cannabis operators.

The NCV Newswire by New Cannabis Ventures aims to curate high quality content and information about leading cannabis companies to help our readers filter out the noise and to stay on top of the most important cannabis business news. The NCV Newswire is hand-curated by an editor and not automated in anyway. Have a confidential news tip? Get in touch.