May was a difficult month for all cannabis sectors – new cannabis ventures

As we wrote in a previous article, the Global Cannabis Stock Index fell by 14.6% in May. Currently, in 2024 it will increase by 44.4%.

In this article, we summarize the performance of other managed indices that New Cannabis Ventures offers to its readers. We discuss the performance of the US Cannabis Operators Index, the Subsidiary Cannabis Index, and the Canadian Cannabis LP Index. The index, which was the strongest since the Department of Health and Human Services asked the DEA in late August to change the cannabis dosing schedule, has been highly volatile since then. This month, two indices dropped, one slightly.

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US Cannabis Stock Index

The American Cannabis Operator Index was quite strong in January after falling in December, but fell in February and then rose in March and April. In May it fell by 29.3% to 17.23:

In 2023, the index rose 7.6% to 15.34 despite overall weakness in cannabis stocks, and the late January close was the highest close in over a year, but the April close was higher. In 2024, this indicator has already increased by 12.3%:

The index, which launched in October 2018, hit an all-time low in August before rising sharply. It’s still much less than when it launched:

The worst performer in May was MSO Cannabist (OTC: CBSTF) (NEO: CBST), which lost 40.3%. The strongest stock was Cresco Labs (OTC: CRLBF) (CSE: CL), which fell 23.0%.

In June, the index will have 13 members and Grown Rogue (OTC: GRUSF) (CSE: GRIN) will join.

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Supplementary Cannabis Index

The Ancillary Cannabis Index was very strong in March but declined slightly in April. In May it fell by 2.6% to 14.65:

After a massive loss of 76.6% in 2022, it fell 10.9% to 13.38 in 2023, outperforming the Global Cannabis Stock Index. In 2024 it will increase by 9.5%:

The index is down more than 85% since launch in late March 2021:

Turning Point Brands (NYSE: TPB) was the best performer in May, gaining 13.8%. It was also the strongest in April. The worst performing stock was WM Technology (NASDAQ: MAPS), which fell 21.8%.

The index will have seven members in June with the departure of WM Technology.

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Canadian Cannabis LP Index

The Canadian Cannabis LP Index rose in April from an all-time low in late March. In May it fell by 19.9% ​​to 65.91:

The index, which fell by 62.8% in 2022, fell by 16.2% to 60.85 in 2023, and increased by 8.3% in 2024:

The LP Index is down significantly from its peak over 5 years ago in early 2018:

Canadian LPs are mostly trading below C$1, with only five stocks trading higher at the end of May. Two of the index’s 10 stocks closed below C$0.25. Aurora Cannabis (TSX: ACB) (NASDAQ: ACB) fell 33.4% in May. Canopy Growth (TSX: WEED) (NASDAQ: CGC) fell 43.3%. Cronos Group (TSX: CRON) (NASDAQ: CRON) lost 12.6%. Organigram (TSX: OGI) (NASDAQ: OGI) fell 19.9%. Tilray Brands (TSX: TLRY) (NASDAQ: TLRY) reported a loss of 28.4%.

The index will have nine members in June as 1 name that was trading below $0.10 on May 29 has been removed.

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New Cannabis Ventures maintains four proprietary indices designed to help investors monitor publicly traded cannabis stocks, including the Global Cannabis Stock Index and the Canadian Cannabis LP Index. The third index, the American Cannabis Operator Index, launched in late October 2018 and tracks the leading cannabis growers, processors and retailers in the United States. We then launched the Ancillary Cannabis Index in late March 2021, reflecting the growing number of publicly traded companies providing goods or services to cannabis operators.

Based in Houston, Alan leverages his experience as the founder of the online community 420 Investor, the first and still largest due diligence platform focused on publicly traded cannabis stocks. Through his extensive network of 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 after more than two decades in research and portfolio management. Alan is a prolific writer who has published over 650 articles on Seeking Alpha since 2007, where he has 70,000 followers. He is a frequent speaker at industry conferences and a frequent source of information for media outlets including the NY Times, Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | Linkedin | E-mail

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