You’re reading this week’s edition of the New Cannabis Ventures weekly newsletter, which we have been publishing since October 2015. The newsletter includes unique insight to help our readers stay ahead of the curve as well as links to the week’s most important news. We no longer send these by email as we did in the past, but we post this and all of the newsletters on our website here.
Friends,
The Global Cannabis Stock Index soared yesterday by 4.5%, but it is down still by 15% year-to-date. Despite the big rally yesterday, it is still down this week. Here is the year-to-date action:
This plunge has extended the bear market that began in early 2021 to more than four years now, with the index, now at 5.85, having dropped by almost 94% since the peak close.
I have been watching this sector since early 2013, and one thing that I have learned is that the cannabis sector is very volatile. Cannabis stocks go up too much, and they fall too much as well.
The cause of this bounce yesterday is unknown to me. I am unaware of any new buyers of cannabis stocks. The big issue has been rescheduling, which would eliminate 280E taxation, and the murky outlook for the end of 280E remains. We are in earnings season, and the earnings reports have not been exciting at all. We provided a preview of the upcoming financial reports in late February, and we will share a summary by the end of this month. For those who want to keep up with how things are changing, we do update our tracker in real-time.
At these lower prices, I have become more neutral on some stocks that I have called out cautiously, but they keep dropping along with the good ones! The Global Cannabis Stock Index currently has 28 members. The index is down 15% year-to-date, and 8 of the 28 stocks have dropped by at least twice as much. On the other hand, 7 are actually up so far. Many traders and investors (too many) focus on the ETF MSOS, and, while it was up 10.4% yesterday, it is still down 19.4% so far in 2025.
I have been encouraging readers to focus on companies with better balance sheets for quite some time. The MSOs have challenging balance sheets, while some ancillary companies and some Canadian LPs have strong balance sheets.
While I certainly hope that yesterday’s move higher was the beginning of a new trend, I don’t believe that it was. Cannabis stocks seem very cheap, but the potential positive catalysts are not any closer to kicking in. I have warned and will continue to warn that 280E taxation staying in effect could kill a lot of the MSOs.
Again, let’s hope for better times for the cannabis sector!
Sincerely,
Alan
New Cannabis Ventures publishes curated articles as well as exclusive news. Here is what we published this past week:
To get real-time updates, like our Facebook page, or follow Alan on Twitter. Share and discover industry news with like-minded people on the largest cannabis investor and entrepreneur group on LinkedIn.
Use the suite of professionally managed NCV Cannabis Stock Indices to monitor the performance of publicly-traded cannabis companies within the day or over longer time-frames. In addition to the comprehensive Global Cannabis Stock Index, we offer the Canadian Cannabis LP Index, the American Cannabis Operator Index and the Ancillary Cannabis Index.
Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email
You’re reading this week’s edition of the New Cannabis Ventures weekly newsletter, which we have been publishing since October 2015. The newsletter includes unique insight to help our readers stay ahead of the curve as well as links to the week’s most important news. We no longer send these by email as we did in the past, but we post this and all of the newsletters on our website here.
Friends,
The Global Cannabis Stock Index soared yesterday by 4.5%, but it is down still by 15% year-to-date. Despite the big rally yesterday, it is still down this week. Here is the year-to-date action:
This plunge has extended the bear market that began in early 2021 to more than four years now, with the index, now at 5.85, having dropped by almost 94% since the peak close.
I have been watching this sector since early 2013, and one thing that I have learned is that the cannabis sector is very volatile. Cannabis stocks go up too much, and they fall too much as well.
The cause of this bounce yesterday is unknown to me. I am unaware of any new buyers of cannabis stocks. The big issue has been rescheduling, which would eliminate 280E taxation, and the murky outlook for the end of 280E remains. We are in earnings season, and the earnings reports have not been exciting at all. We provided a preview of the upcoming financial reports in late February, and we will share a summary by the end of this month. For those who want to keep up with how things are changing, we do update our tracker in real-time.
At these lower prices, I have become more neutral on some stocks that I have called out cautiously, but they keep dropping along with the good ones! The Global Cannabis Stock Index currently has 28 members. The index is down 15% year-to-date, and 8 of the 28 stocks have dropped by at least twice as much. On the other hand, 7 are actually up so far. Many traders and investors (too many) focus on the ETF MSOS, and, while it was up 10.4% yesterday, it is still down 19.4% so far in 2025.
I have been encouraging readers to focus on companies with better balance sheets for quite some time. The MSOs have challenging balance sheets, while some ancillary companies and some Canadian LPs have strong balance sheets.
While I certainly hope that yesterday’s move higher was the beginning of a new trend, I don’t believe that it was. Cannabis stocks seem very cheap, but the potential positive catalysts are not any closer to kicking in. I have warned and will continue to warn that 280E taxation staying in effect could kill a lot of the MSOs.
Again, let’s hope for better times for the cannabis sector!
Sincerely,
Alan
New Cannabis Ventures publishes curated articles as well as exclusive news. Here is what we published this past week:
Exclusives
A Strong February for Cannabis Sales
Cannabis Stocks Extend the Big Decline
One Cannabis Sub-Sector Rallied
Financial Reports
Curaleaf Q4 Revenue Shrinks
Capital Raises
Another C$41.5 Million Invested in Organigram
Glass House Extends Debt
To get real-time updates, like our Facebook page, or follow Alan on Twitter. Share and discover industry news with like-minded people on the largest cannabis investor and entrepreneur group on LinkedIn.
Use the suite of professionally managed NCV Cannabis Stock Indices to monitor the performance of publicly-traded cannabis companies within the day or over longer time-frames. In addition to the comprehensive Global Cannabis Stock Index, we offer the Canadian Cannabis LP Index, the American Cannabis Operator Index and the Ancillary Cannabis Index.
View the Public Cannabis Company Revenue & Income Tracker, which ranks the top revenue producing cannabis stocks.
Stay on top of some of the most important communications from public companies by viewing upcoming cannabis investor earnings conference calls.
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