Index Archives - Green Market Report

Debra BorchardtJanuary 17, 2022
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5min5390

Cannabis companies may be reporting record sales in some cases, but investors wouldn’t think that based on the stock prices. The fourth quarter was challenging for a number of reasons ranging from a fast expansion of stores in some provinces in Canada, disappointments in legislation for new cannabis states, and overwhelming debt clouding some company outlooks. In addition, there were companies reporting slowing sequential sales and that was enough to cause many investors to throw in the towel. You can read the entire report here

The Green Market Report Cannabis Company Index dropped another 29% during the fourth quarter as it seemed once again every company except for two experienced a sharp decline in share valuations. In previous quarters, the cannabis industry seemed to mirror the broader market, but those days are over. The S&P 500 turned in a fourth-quarter performance that rose 10.65% and the Russell 3000 had a return of 9.3%. 

Overall, the Green Market Report Cannabis Company Index fell by 27% in 2021. By comparison, the North American Marijuana Index fell by 25% for 2021. Looking at the full year, the S&P 500 rose 26.89% in 2021 and this was its third straight positive year. The Dow and Nasdaq also joined the party with returns of 18.73% and 21.39% for the year and three years of positive returns. Investors would have been better off avoiding the cannabis stocks for the past year.

Changes To The Index

The Index made the following changes at the end of the fourth quarter. Hexo is being removed from the Index as the company has stated it is having problems meeting its debt obligations. After two quarters in a row of poor performance, it’s time to release this one into the wild. Taking its place is Glass House Brands (OTC: GLASF) with a market cap of $220 million. 

The company recently acquired CBD company Plus Products for a song. The company’s CEO Kyle Kazan has expressed his desire to continue lowering the cost to cultivate cannabis in an increasingly competitive landscape. He recently said, “We have a planned total footprint of 6 million square feet and projected total biomass production of approximately 1.7 million pounds, which we believe would make Glass House Brands the largest and most efficient cannabis supplier in the U.S., by a wide margin. With this significant capacity, we will be extremely well-positioned to supply cannabis consumers across the country once that opportunity arises.” Glass House also completed the acquisition of the approximately 160-acre SoCal Facility with six on-site greenhouses in September 2021. 

The company’s brands include the namesake Glass House Farms, Bella Thorne’s Forbidden Flowers, and Mama Sue CBD tinctures. The company has also created brand partnerships with singer-songwriter Jenny Lewis and Legion of Bloom. In August, Glass House reported cash and cash equivalents of $134.3 million as of June 30, 2021, versus just $4.5 million as of June 30, 2020. During the quarter, Glass House said it eliminated $38.3 million of debt through the completion of a Preferred Stock offering.

In Closing 

The first quarter of 2022 looks like a replay of last year. Cannabis stocks have gotten off to a good start as valuations moved higher. The early earnings releases from Tilray and Organigram brought optimism back to investors. Both companies reported rising revenues and solid balance sheets. In addition to that, California Governor Gavin Newsom said he would start to address the taxation issues for cannabis in his state. In other positive news, Germany’s new leaders have quickly moved to legalize adult-use cannabis in the country which could spark efforts for a legal market in Europe as a whole. All of this is great for the industry and for investors. While the latest COVID variant Omicron has put a damper on the pandemic recovery, there is hope that this variant will be short-lived. The fourth quarter certainly tested investors’ resolve, but it looks as if 2022 may finally pay off for the patient shareholder.


Debra BorchardtAugust 5, 2019
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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.


StaffFebruary 5, 2019
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6min13910

Cannabis Stocks Follow Broader Market Selloff As Q4 Index Falls 33%

New York City – February 5, 2018 /AxisWire/ The Green Market Report (GMR), the cannabis industry’s most trusted source for credible in-depth financial and economic reporting, today released its 2018 Cannabis Company Index Q4 Summary Report. The report can be downloaded at GreenMarketReport.com/Reports.

The GMR Index follows the trading activity of 30 selected public cannabis companies that denote market dominance. After rising 56% in the third quarter, on a plethora of good news, the Index plunged 33% along with the broader market in general which saw stocks give back most of the year’s gains. The S&P 500 fell 13.9%, while the Horizons Marijuana Life Sciences ETF (HMMJ) declined by 39% in the fourth quarter. The GMR Index managed to gain 5.5% for the entire year, while the HMMJ actually dropped 19% for the year .

In Q2, investors felt that the risk to investing in cannabis had been tempered once it was clear that the DOJ was more talk than action when it came to punishing those in the cannabis industry. In addition, conservative Republicans at both the federal and state level began to demonstrate a willingness to shift away from their hardline anti-cannabis stances of the past and confirmed a willingness to discuss a pathway towards legalization.

History continued to be made in the cannabis industry during the last quarter. On October 17, Canada began the first day for sales of adult use cannabis in Canada – making 1017 the new 420. The mid-term elections in the U.S. were the next big event for the quarter. More states legalized cannabis in this year’s midterm elections in November, with Michigan becoming the latest one to legalize adult-use cannabis. Missouri and Utah both approved medical cannabis. If that wasn’t enough for the industry to cheer about, in December lawmakers in D.C. passed the 2018 Farm Bill, which included an amendment legalizing hemp.

“The fourth quarter of 2018 was very challenging for cannabis industry stocks as share prices plunged as stocks in general entered bear market territory. Legalization of hemp in December set the stage for a recovery as cannabis stocks have mostly moved higher in the early days of 2019 ,” stated Debra Borchardt, CEO of Green Market Report.

The best performing stock in the GMR Index was Charlotte’s Web Holdings which managed to end the quarter neither gaining or losing. Remaining flat was a huge accomplishment.  The company stands to benefit greatly from the legalization of hemp and hemp-derived CBD products.

The biggest loser in the GMR Index was The Green Organic Dutchman with a loss of 64% in its share price. TGOD is behind many of its peers with regards to having product available for the newly legal adult market Canada.

Consolidation continues to force the Index to make adjustments, but the choice of stellar companies as replacements make the changes very easy. MPX Bioceuticals and Emblem Corp. were both removed due to impending acquisitions.

The Index decided to add Acreage Holdings Inc. as that company continues to add to its portfolio and now has a presence in 19 states. iAnthus is acquiring MPX Bioceutical and is also getting added to the Index. While the Index was sad to let MPX go, the substitution is just as strong.  Cresco Labs is added as this multi-state operator focuses on markets with high barriers of entry. Finally, Florida-based Trulieve was added as the company continues to report increasing revenues and has embarked on an expansion strategy outside of the state.

“Looking ahead to 2019, we expect to see the industry adjust to the legalization of hemp and what that means for hemp-derived CBD products,” added Borchardt. “We expect the industry will experience more consolidation and even more cannabis companies to become publicly traded stocks.”

About Green Market Report:

The Green Market Report (GMR) is headquartered in New York City with an office in Los Angeles. GMR is poised to be the center for trustworthy business, financial and economic news and intelligence. The site offers coverage on financial matters including news briefs on business, cultivation, and extraction, cannabis company stock prices, and wholesale cannabis pricing. For more information, please visit www.greenmarketreport.com or email info@greenmarketreport.com. Follow us on Facebook, Instagram and Twitter @GreenMarketRpt.

Communications Contact:

Cynthia Salarizadeh

KCSA Strategic Communications

856-425-6160

cynthia@kcsa.com

 

 


StaffJanuary 14, 2019
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4min84450

The Green Market Report (GMR), the cannabis industry’s most trusted source for credible in-depth financial and economic reporting, today released its 2018 Cannabis Company Index Q4 Summary Report. The report can be downloaded at GreenMarketReport.com/Reports.

The GMR Index follows the trading activity of 30 selected public cannabis companies that denote market dominance. After rising 56% in the third quarter, on a plethora of good news, the Index plunged along with the broader market in general which saw stocks give back most of the year’s gains. The S&P 500 fell 9.2% in December, while the Horizons Marijuana Life Sciences ETF (HMMJ) declined by 39% in the fourth quarter. The GMR Index managed to gain 5.5% for the entire year, while the HMMJ actually dropped 19% for the year.

The fourth quarter got off to a good start as stocks began ticking higher at the beginning of October, but then halfway through the month, the selloff began. While there was a slight recovery at the beginning of November, stocks took another downward turn and never looked back.

History continued to be made in the cannabis industry during the last quarter. On October 17, Canada began the first day for sales of adult use cannabis in Canada – making 1017 the new 420. The mid-term elections in the U.S. were the next big event for the quarter. More states legalized cannabis in this year’s midterm elections in November, with Michigan becoming the latest one to legalize adult-use cannabis. Missouri and Utah both approved medical cannabis. If that wasn’t enough for the industry to cheer about, in December lawmakers in D.C. passed the 2018 Farm Bill, which included an amendment legalizing hemp.

“The fourth quarter of 2018 was very challenging for cannabis industry stocks as share prices plunged as stocks, in general, entered bear market territory. Legalization of hemp in December set the stage for recovery as cannabis stocks have mostly moved higher in the early days of 2019,” stated Debra Borchardt, CEO of Green Market Report.

The best performing stock in the GMR Index was Charlotte’s Web Holdings (CSE: CWEB) which managed to end the quarter neither gaining or losing. Remaining flat was a huge accomplishment.  The company stands to benefit greatly from the legalization of hemp and hemp-derived CBD products.

The Index decided to add Acreage Holdings (CSE: ACRG-U) as that company continues to add to its portfolio and now has a presence in 19 states. iAnthus (CSE: IAN) is acquiring MPX Bioceutical and is also getting added to the Index. While the Index was sad to let MPX go, the substitution is just as stellar.  Cresco Labs (CSE: CL) is added as this multi-state operator focuses on markets with high barriers of entry. Finally, Florida-based Trulieve (CSE: TRUL) was added as the company continues to report increasing revenues and has embarked on an expansion strategy outside of the state.

“Looking ahead to 2019, we expect to see the industry adjust to the legalization of help and what that means for hemp-derived CBD products,” added Borchardt. “We expect the industry will experience more consolidation and even more cannabis companies to become publicly traded stocks.”


Video StaffJuly 18, 2018

4min11002

The Green Market Report Cannabis Company Index recovered following a challenging start to the year. After falling 21.9% in the first quarter, the Index on average gained 20% for the second quarter of 2018.

If you’ll recall at the beginning of the year, U.S Attorney General Jeff Sessions rescinded the Cole Memorandum and stocks responded accordingly with many investors taking profits gained in 2017. There was a great deal of fear that the Department of Justice (DOJ) would begin cracking down on the cannabis industry and shareholders wanted no part of that. As it turns out, the DOJ was more bark than bite and very little punitive action has taken place.

The second quarter began a slow climb back up the charts as shareholders began to return to the market comforted by the lack of movement by the DOJ. The quarter was significant for high profile IPO’s like MedMen Enterprises, The Green Organic Dutchman, and Green Thumb Industries. Adding to the excitement, the major stock exchanges in the U.S. opened their doors to Canadian cannabis companies. The NASDAQ welcomed Cronos Group and the New York Stock Exchange-listed Canopy Growth.

Canada’s final legislative approval for legalized adult-use marijuana in June was met with relief and it was capped off by Prime Minister Trudeau’s setting October 17, 2018, as the goal date for sales. Since so many Canadian cannabis companies have built business strategies around this market, it was encouraging to get a green light with a set date. Uncertainty is always unsettling and these final pieces to the legalization puzzle were finally put in place.

The medical market also received the expected good news for GW Pharmaceuticals from the FDA, which approved its cannabinoid drug Epidiolex. This drug will be used to treat rare forms of epilepsy called Dravet Syndrome and Lennox Gastaut. It uses real cannabis plants and is not a synthetic compound. The company had been achieving all of its drug trial study goals and there seemed to be no reason for the FDA to have turned the company down. So, even with positive expectations, getting the final word was heartening.

Still, the FDA made it clear that its approval did not change the scheduling status for cannabis and that the agency would send a recommendation to the DEA, but did not say what that recommendation would be. GW Pharma was more clear and adamantly stated that rescheduling would occur within 90 days.

This approval has many in the cannabis industry feeling that there will be some big moves for the rescheduling question as a result of the FDA’s approval. Even though there really is no guarantee of this happening, most feel that there is no turning back now for cannabis and a change in its classification is inevitable.

You can read the entire  Index Summary here.

 

 


William SumnerMay 16, 2018
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After a rocky start at the beginning of the year, the North American Marijuana Index is starting to show some signs of a recovery. The index, which tracks the top performing cannabis stocks in the United States and Canada, tumbled precipitously in January of this year after the Department of Justice announced that it would rescind the Obama-era Cole Memorandum, which provided guidance for the legal cannabis industry to avoid coming under the scrutiny of federal prosecution.

Companies hoping to become listed on the North American Marijuana Index must have a market cap of at least $80 million, a minimum daily trading volume of $2 million, and a share price of at least $1.00. Companies with a revenue of $5 million are exempt from the trading criteria.

In the month of April, the North American Index gained 3%, led primarily by the huge gains in the U.S. market. The U.S. Marijuana Index gained approximately 19% in April; six companies on the index gained 20% or more and another ten companies gained more than 10%.

The average trading volume on the U.S. Index also increased by 77%, compared to the previous month.

The gains were realized following news that former U.S. Speaker of the House John Boehner had reversed his position on medical cannabis and joined the advisory board of the medical cannabis company Acreage Holdings, which operates in 11 U.S. states, along with former Massachusetts Gov. Bill Weld. In the days the following Boehner and Weld’s announcement, the U.S. Index increased by 25%.

While the U.S. Marijuana Index was experiencing an upswing, the Canadian Marijuana Index was starting to get a taste for the downswing. Although recreational cannabis sales are set to become legal in Canada later this summer, the Canadian Marijuana Index decreased by 9%.

Likewise, the average trading volume of constituents on the Canadian Marijuana Index decreased by 16%. Approximately 80% of the companies listed are currently in the red, with only a few outliers outperforming expectations. Two such outliers were MedReleaf (LEAF) and WeedMD (WMD), which both gained 20% in April.

Unsurprisingly, the top three gainers in the month of April were companies listed on U.S. market while the top three losers were Canadian companies.

General Cannabis Corp. (CANN) led the pack with a 96% APR return and $4.5 million USD in trading volume. Following General Cannabis Corp. was CV Sciences (CVSI), which generated a 60% APR return and volume of $889,000. Rounding out the top three gainers was Surna Inc. (SRNA), which had a 31% APR return and a volume of $180,000.

For this month’s top three losers, Hiku Brands (HIKU) was hit the hardest with a -36% APR return and a volume of $1.2 million. Next was Isodiol International Inc. (ISOL), which had a -25% APR return and a volume of $3.1 million. In third place for the top three losers this month was CanniMed Therapeutics Inc. with an APR return of -21% and a volume of $1.3 million.

The most active cannabis company in April was Canopy Growth Corporation (WEED), with a volume of $117 million and an APR return of -11%. The second most active cannabis company was also Canopy’s closest competitor: Aurora Cannabis (ACB). Aurora had an APR return of -13% and a volume of $69.3 million. The biopharmaceutical company GW Pharmaceuticals (GWPH) was the third most active in April, with an APR return of 18% and a volume of $65.4 million.


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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


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