Green Market Report Cannabis Company Index Releases 2019 Q2 Review

The Green Market Report Cannabis Company Index started 2019 on a high note as the first quarter jumped 40%, but the air came out of the market during the second quarter and the entire group took a tumble. Many of the cannabis stocks slid as much as 20%. This happened despite the number of large deals announced during the quarter that set the stage for massive consolidation.

The Green Market Report Index fell 21% in the second quarter but is still up by 19% for the six months of 2019. To get an idea of how poorly the cannabis stocks performed, the S&P 500 rose by 4.3% in the second quarter. Worries over the trade war with China did dampen the broader market and funds are flowing more into the bond market, but the equities still managed to squeak out a positive performance.

Cannabis companies are vying to be the largest in the industry and the latest round of mergers and acquisitions perfectly illustrate this. While there were numerous positive events that occurred during the quarter, the selloff refused to reverse course no matter what good news came out. The selloff has continued into the third quarter and still hasn’t shown any signs of bottoming out yet.

The selling hasn’t diminished the appetite of investors. Funds like Merida Capital’s $200 million fund continue to get launched and money continues to flow into the sector. Viridian Capital Advisors reported that by the end of June 26 the industry had completed 339 capital raises versus 305 capital raises for 2018.  The total amount raised in 2019 for the first six months was $7.3 billion versus 2018’s $4.5 billion. A handful of names actually managed a solid performance in the second quarter, but it became a contest of who could control the bleeding.

Top Best Performing Stocks – Second Quarter 2019

Innovative Industrial Properties 55%
GrowGeneration 10%
GW Pharmaceuticals 3%
Cronos Group -1%
Canopy Growth -5%

The Bottom 5 Worst Performing Stocks – Second Quarter 2019

TILT Holdings -55%
Emerald Health Therapeutics -41%
Sunniva -40%
iAnthus Holdings -40%
MariMed -40%

The following changes have been made to the Green Market Report Cannabis Company Index. CannTrust (NYSE: CTST) is being removed as a result of the company’s scandal involving the growing of plants in rooms that were not licensed and Isodiol (OTC: ISOLF) is being removed based on valuation. Two companies have been added to replace the ones removed and they are Valens GroWorks (CSE: VGW) and Green Growth Brands (GGB).

The full report is available in the Report section on the website for $9.99. The GMR Index Review for the First Quarter is now available for free.

Debra Borchardt

Debra Borchardt is the Co-Founder, and Executive Editor of GMR. She has covered the cannabis industry for several years at Forbes, Seeking Alpha and TheStreet. Prior to becoming a financial journalist, Debra was a Vice President at Bear Stearns where she held a Series 7 and Registered Investment Advisor license. Debra has a Master's degree in Business Journalism from New York University.

Leave a Reply

Your email address will not be published. Required fields are marked *

Get the latest cannabis news delivered right to your inbox

The Morning Rise

Unpack the industry with the daily cannabis newsletter for business leaders.

 Sign up

About Us

The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


Recent Tweets

Get the latest cannabis news delivered right to your inbox

The Morning Rise

Unpack the industry with the daily cannabis newsletter for business leaders.