After a strong start to the year, the Canadian cannabis sector is continuing to inch forward in June. The last month brought us the second-highest monthly gain in stock market history for the industry and the most since January 2017.
The cannabis industry is a fast-growing sector of the investing world. Much of the gain in June was attributed to growth in the ancillary cannabis stocks. These stocks are companies that are engaged in any of several industries that are supportive of the cannabis industry. The number of ancillary cannabis stocks has grown from just a few companies a year ago to over 150 today.
During the first two months of June, ancillary cannabis stocks advanced an average of 3.3%. This was higher than the 2.3% CAGR from the start of the year through May. The sector’s monthly price change was even higher at 4.8%.. Read more about cbd stocks to watch and let us know what you think.Following up on our recent discussion of how cannabis investors have embraced publicly traded side companies, New Cannabis Ventures launched its seventh proprietary cannabis side index in late March.
After falling 4.6% in April and 2.5% in May, the index rose 3.3% in June to 96.08:
It fell 3.9% in the second quarter, outperforming the Global Cannabis Stock Index, which fell 8.7%:
Indexcovers enterprises that provide goods and services to cannabis operators. Each qualified company must trade at a price of at least $0.50 per share with an average daily trading value of at least $500,000 at the time of the monthly rebalancing of the index. In addition, index participants must generate at least $1 million per quarter from their ancillary activities.
In June, the index included 15 participants, 4 of which posted double-digit gains and 4 of which posted double-digit declines, with a median return of 6.0% :
Agrify (NASDAQ: AGFY), Forian (NASDAQ: FORA and KushCo Holdings (OTC: KSHB). Agrify and Forian were the two weakest values in May.
Power REIT (NYSE American: PW), Scotts Miracle-Gro (NYSE: SMG) and Tilt Holdings (CSE: TILT) (OTC: TLLTF) were the three weakest names in June.
Tilt Holdings (CSE:TILT) (OTC:TLLTF) will not join the index in July as its price has fallen below the $0.50 floor, while WM Technology (NASDAQ:MAPS) joins, leaving 15 participants in the index. In next month’s review, we will summarize July’s results and discuss any additions or deletions. Bookmark this page to stay up to date on cannabis supplement price changes throughout the day, or as the days go by.
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Based in Houston, Alan draws on his experience as founder of the 420 Investor online community, the first and still largest integrated analysis platform focused on publicly traded cannabis stocks. Through his many connections in the cannabis community, Alan continues to find new ways to bring the industry together and promote sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Until early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent analyst and then for more than two decades in research and portfolio management. Alan is a prolific writer with over 650 articles published on Seeking Alpha since 2007, where he has 70,000 subscribers. He is a frequent speaker at industry conferences and appears regularly in the media, including the NY Times, Wall Street Journal, Fox Business and Bloomberg TV. Get in touch with Alan: Twitter | Facebook | LinkedIn | E-mail
In this section:
agfy, Agrify, fora, Forian, kshb, KushCo Holdings, power reit, pw, Scotts Miracle-Gro, smg, TILT, Tilt holdings, TLLTF
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KushCo Holdings expects sales of $27.5 to $28 million in the third quarter.
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