Marijuana stocks Archives - Green Market Report

StaffMarch 18, 2020


Editors Note: This is a guest post by Maria Hills. 

The coronavirus has had a big impact on the world’s economy, and even more so on the financial cannabis market. While the S&P Index has seen a 17% drop, various marijuana companies have experienced a drop of 30% and more. Of course, this raises the question of whether it’s a good time to buy cannabis stocks right now, and if there’s any chance of finding a bargain.

Covering Your Concerns

There are a number of different reasons why cannabis stocks have been hit particularly hard due to coronavirus. One of the biggest reasons is because they’re a high stakes investment, to begin with – it’s still rare for a marijuana company to turn a comfortable profit. This is also despite the fact that many American states have legalized cannabis. Another issue around investing in cannabis stocks is financing. No matter what the end of the tunnel looks like with coronavirus, one thing’s for sure is that they’ll be less investment channeled into asset classes like cannabis with a high risk. Cannabis companies were already having issues finding good investment sources before the outbreak hit.

There’s also the concern that the impact that the virus has had on China’s economy so far will spread its reach to the marijuana industry, too. Like many industries, the cannabis industry relies on China as the main manufacturing hub, especially when it comes to vaping products. The last reason why there is concern around an investment like this is consumer spending – or lack thereof. Many people will restrict spending on non-essential goods, which will hit industries like cannabis the hardest.

The Damage is Contained

For the most part, these concerns are so far exaggerated. While the legal environment in America still isn’t where it needs to be, more and more states are moving toward legalization, which is great news for the industry. As for China’s economy, there is more than one way to consume cannabis, so not all companies have to rely on China’s manufacturing facilities to keep producing their products. When thinking about consumer spending, for some purchasing cannabis isn’t a non-essential – it’s an integral part of their medical management plan. The only real valid concern here is financing – there’s every chance that pot companies will continue to struggle to get the funding they need, which most rely heavily upon. If you can get over this little hurdle, though, purchasing cannabis stocks in a dip like this has every chance of paying off.

Investing in the Right Company

It’s not easy finding the right marijuana company to invest in, but one thing that you do want to figure out before you take the leap is that your finances are in order. If you need a bit of a boost to make the most of this opportunistic gap in the market, consider options like personal or title loans. Short-term loans like this are great for initial investments and can be paid back at your leisure. Ignore the fear-mongering in the media, and take the leap into what could end up being one of the most successful alternative medicine industries we’ve seen – ever.

William SumnerMay 16, 2018


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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