By the end of May, the US market had had a less than stellar month. In early May, the NASDAQ had made a bullish run with the tech sector leading the way. However, the market ended up falling short as the tech sector came to a halt at the end of May. Cannabis stocks did not fare much better. The cannabis sector had been leading the NASDAQ with over 30% at the end of April but ended up giving up half of its market share and dipped 2.5% as May slowly came to a close.
Ancillary stocks (companies that provide services or products for the cannabis industry) have been doing well as of late, with the HYY Synthetic Joint Company Index (HYYJ) gaining 5.2% in May (compared to a 15.6% rise in the S&P 500). On top of that, both the Marijuana Index and the Cannabis Index were down slightly in May, with the former off 1.2% and the latter down 2.5%.
If you are looking for the best possible business opportunity, you may want to consider a company that specializes in developing ancillary businesses that serve the cannabis industry. In the U.S., it is estimated that more than $10 billion could be spent on all things cannabis in the next five years. If you are looking to get your foot in the door of the emerging cannabis industry, you may want to look at some ancillary companies that are not currently focused on the industry.. Read more about hydroponic stocks 2021 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, the index fell another 2.5% in May to 93.02 : The index includes companies 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 May, the index had 14 participants, of which 6 rose and 4 fell by more than 10%, with a median return of -3.4% : The three strongest stocks were urban-gro (NASDAQ: UGRO), Akerna (NASDAQ: KERN) and GrowGeneration (NASDAQ: GRWG), all of which released first-quarter numbers during the month. Akerna was one of the worst performers in April, while urban-gro and GrowGeneration also declined during the month. The three weakest names in May are the recent IPOs of Agrify (NASDAQ: AGFY), Turning Point Brands (NYSE: TPB) and Forian (NASDAQ: FORA), which was the strongest stock in April. In June, iPower (NASDAQ: IPW), a recently listed hydroponics equipment retailer and supplier, was added to the index, bringing it to 15 members. In next month’s review, we will summarize the June 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. Stay ahead of the crowd by subscribing to 420 Investor, the largest and most comprehensive subscription service for cannabis dealers and investors since 2013. Based in Houston, Alan draws on his experience as founder of the 420 Investor online community, the first and still largest due diligence platform focused on publicly traded stocks in the cannabis sector. 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
What’s New in Cannabis Stocks for the week ending 28/5/21
What’s New in Cannabis Stocks for the week ending 21/05
First quarter earnings reports show rapid growth in US cannabis industry
What’s new in cannabis stocks for the week ending 14/05/21
The month of May was a brutal one for cannabis stocks, with many of the largest names dipping at least 2.5% in the month. The downtrend started on April 26th, when MedReleaf (OTCMKTS:MEDFF) reported earnings. The stock fell over 8% that day, but bounced back quickly as the company provided a very bullish outlook for the second quarter. MedReleaf has been one of the few cannabis stocks that has consistently beaten analyst expectations. The company has notched three quarters of positive earnings, and is on track to post its third quarter of positive earnings.. Read more about list of cannabinoids stocks and let us know what you think.