Cannabis Stocks Extend Rally in August

Overcoming stress on Canadian LPs and CBD providers with incredibly powerful overall performance from American cannabis operators, the Worldwide Cannabis Stock Index extended July gains throughout August by rising two.1% in choppy trading to 32.74:

The index, which had 37 qualifying members throughout the month following the quarterly rebalancing at the finish of June, declined 34.1% in 2019 to 42.20 and is now down 22.four% in 2020:

Just after posting an all-time closing low of 16.95 set on March 18th, the index has rallied sharply to finish the month 93.two% larger but nevertheless down more than 81% from its early 2018 closing higher at 180.02:

The strongest four names in August elevated by at least 19%:

GrowGeneration, which sold $48 million of stock in a public supplying at $five.60 in late June, soared to an all-time higher of$22.88 just before closing the month at $15.955. The enterprise beat analyst forecasts for Q2 and offered powerful guidance for the balance of the year and 2022. The stock, which trade more than $1 billion in worth on its most active day, almost its industry cap, was aided by two analyst initiations throughout the month and an look on Jim Cramer’s Mad Income. The weakness late in the month was spurred by a quick-report from Hindenburg Investigation as nicely as disclosure of significant sales of stock by insiders. GrowGen is up 293% in 2020. Trulieve also beat analyst forecasts and upped guidance, pushing the stock to close up 93% year-to-date. Rumors of a prospective merger with an additional top MSO seem to have boosted the stock as nicely.

Planet 13, 1 of the strongest performers in July, tacked on more gains throughout August and is up 79% this year as a result far. The enterprise reported its Q2 financials just after the close on August 31st . Planet 13 has been impacted by the reduction in Las Vegas tourism, but it has swiftly adapted its organization to serve locals. The enterprise priced its second current equity supplying in late August. Cresco Labs, also 1 of the best performers in July, reported a stronger-than-anticipated Q2 in terms of income and adjusted EBITDA, supported by continued strength in Pennsylvania and Illinois, exactly where it has been opening more dispensaries. The enterprise reported sequential development in excess of 30% in all of its markets except Massachusetts, which was impacted by mandated closure for adult-use sales. Cresco is down 1% year-to-date.

The four weakest names fell by extra than 21% in August:

Sundial moved to an all-time low following an aggressive equity supplying and a public disclosure that it is in search of strategic options. Its stock is down 89% in 2020. 22nd Century Group, which is down 46% year-to-date, is extra leveraged to tobacco than cannabis, exactly where it is focused on technologies to alter cannabinoid levels. cbdMD, 1 of final month’s strongest performers, gave up gains regardless of a powerful monetary report for its fiscal Q3. The stock is up 9% year-to-date. Energy REIT also seemed to be suffering from profit-taking, as it remains up 126% this year.

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

We will summarize the index overall performance once more in a month. You can discover extra about the index members and the qualifications for inclusion by going to the Worldwide Cannabis Stock Index. A extra full evaluation of the index is out there at 420Investor.com. Be positive to bookmark the web page to keep existing on cannabis stock price tag movements inside the day or from day-to-day.

New Cannabis Ventures maintains six proprietary indices created to support investors monitor the publicly-traded cannabis stocks, such as the Worldwide Cannabis Stock Index as nicely 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 2018 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 extensive premium subscription service for cannabis traders and investors because 2013.

Alan Brochstein, CFA
Primarily based in Houston, Alan leverages his encounter as founder of on line communities 420 Investor, the very first and nevertheless biggest due diligence platform focused on the publicly-traded stocks in the cannabis market. With his in depth network in the cannabis neighborhood, Alan continues to locate new methods to connect the market and facilitate its sustainable development. At New Cannabis Ventures, he is accountable for content material improvement and strategic alliances. Ahead of shifting his concentrate to the cannabis market in early 2013, Alan, who started his profession on Wall Street in 1986, worked as an independent investigation analyst following more than two decades in investigation and portfolio management. A prolific writer, with more than 650 articles published because 2007 at Looking for Alpha, exactly where he has 70,000 followers, Alan is a frequent speaker at market conferences and a frequent supply to the media, such as the NY Instances, the Wall Street Journal, Fox Business enterprise, and Bloomberg Television. Make contact with Alan: Twitter | Facebook | LinkedIn | E mail

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