Cannabis Stocks Extend Rally in August

Overcoming stress on Canadian LPs and CBD organizations with incredibly robust functionality from American cannabis operators, the International Cannabis Stock Index extended July gains for the duration of August by rising two.1% in choppy trading to 32.74:

The index, which had 37 qualifying members for the duration of 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 nonetheless 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 ahead of closing the month at $15.955. The firm beat analyst forecasts for Q2 and offered robust guidance for the balance of the year and 2022. The stock, which trade more than $1 billion in worth on its most active day, practically its market place cap, was aided by two analyst initiations for the duration of 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 effectively as disclosure of massive 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 major MSO seem to have boosted the stock as effectively.

Planet 13, one particular of the strongest performers in July, tacked on added gains for the duration of August and is up 79% this year therefore far. The firm reported its Q2 financials following the close on August 31st . Planet 13 has been impacted by the reduction in Las Vegas tourism, but it has promptly adapted its organization to serve locals. The firm priced its second current equity supplying in late August. Cresco Labs, also one particular of the leading 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 added dispensaries. The firm 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, one particular of final month’s strongest performers, gave up gains regardless of a robust 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 functionality of the Canadian LP Index and the American Cannabis Operators Index:

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

New Cannabis Ventures maintains six proprietary indices developed to assistance investors monitor the publicly-traded cannabis stocks, such as the International Cannabis Stock Index as effectively 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 major 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 considering that 2013.

Alan Brochstein, CFA
Primarily based in Houston, Alan leverages his knowledge as founder of on-line communities 420 Investor, the very first and nonetheless biggest due diligence platform focused on the publicly-traded stocks in the cannabis sector. With his in depth network in the cannabis neighborhood, Alan continues to uncover new techniques to connect the sector 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 sector in early 2013, Alan, who started his profession on Wall Street in 1986, worked as an independent analysis analyst following more than two decades in analysis and portfolio management. A prolific writer, with more than 650 articles published considering that 2007 at In search of Alpha, exactly where he has 70,000 followers, Alan is a frequent speaker at sector conferences and a frequent supply to the media, such as the NY Instances, the Wall Street Journal, Fox Company, and Bloomberg Television. Make contact with Alan: Twitter | Facebook | LinkedIn | E-mail

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