MSOs Lead Cannabis Stocks Lower in October – New Cannabis Ventures

As we described in a previous article, the Global Cannabis Stock Index plunged in October after three consecutive monthly gains. That index is now down 26.1% year-to-date, which has followed a record decline of 70.4% for 2022.

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 one that was quite strong in August and in September led the way lower in October.

American Cannabis Stocks Index

The American Cannabis Operator Index was crushed, losing 28.1% to 13.09:

Down 8.6% in Q1, the index fell 6.9% in Q2. In Q3, it rallied 50.2% . After the big loss in October, it is up down 8.1% in 2023, which is better than the Global Cannabis Stock Index. Over the past year, the index has declined 46.6%:

The index, which launched in October 2018, made all-time lows in July and then in August. It is still down a lot from when it launched:

The best performing MSO in October was Ascend Wellness (OTC: AAWH) (CSE: AAWH), which fell just 1.1%. Cannabist Company (OTC: CBSTF) (NEO: CBST), which was formerly Columbia Care, was the weakest stock, falling 56.3%.

In November, the index will remain at 13 members with the return of Ayr Wellness (OTC: AYRWF) (CSE: AYR.A) and the departure of recent addition Charlotte’s Web (OTC: CWBHF) (TSX: CWEB).

Ancillary Cannabis Index

The Ancillary Cannabis Index was weaker during the month, falling 13.3% to 11.49:

The index, with a massive loss of 76.6% in 2022 to 15.02, has declined 38.9% over the past year. It is down 23.5% in 2023, which is better than the Global Cannabis Stock Index:

The index is down almost 89% since launching at the end of March in 2021:

The best performing stock in the index in October was Chicago Atlantic (NASDAQ: REFI) again at -4.3%, while the worst stock, on of five double-digit decliners, was GrowGeneration (NYSE: IIPR), down 30.1%.

In November, the index will have seven members. Joining is Agripharm (NASDAQ: AGRI), while the three that were added last month, Hydrofarm (NASDAQ: HYFM), NewLake Capital (OTC: NLCP) and WM Technology (NASDAQ: MAPS), are departing.

Canadian Cannabis LP Index

The Canadian Cannabis LP Index was very strong to begin the year, but it has been weak since then. In October, it dropped 8.1% to 61.70:

The index, after gaining 11.5% in Q3 , is now down 15.0% so far in 2023. It fell 62.8% in 2022 to 72.59. Over the last year, it has dropped by 36.4%:

The index, which had made a new all-time low in December and then collapsed in June and then posted a new low in October, is down a lot from its peak:

The Canadian LPs trade mainly below C$1, with just just three stocks having a higher price at the end of October. 13 of the 20 stocks in the index closed below C$0.25. During October, Canopy Growth (TSX: WEED) (NASDAQ: CGC) fell by 25.7%. while Tilray Brands (TSX: TLRY) (NASDAQ: TLRY) moved 23.5% lower. Organigram (TSX: OGI) (NASDAQ: OGI) fell by 17.8%, and Cronos Group (TSX: CRON) (NASDAQ: CRON) dropped 7.7%.

In November, the index will have the same 20 members.

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.

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