August was a good month for many cannabis companies’ stocks
While cannabis ancillary companies are a good option for investors who don’t want to deal with volatility as a whole, direct cannabis operators proved to have a much more positive August. The US Cannabis Traders Index made an incredible comeback last month, gaining 6.7% to 26.43 after an even larger 18.8% increase in July. As a result, the index gained 26.8% in the third quarter so far.
Last month, the list was led by Green Thumb Industries after gaining 46%. Glass House Brands, Cresco Labs, and Columbia Care were three other companies able to gain more than 20%. In contrast, TerrAscend and Planet 13 Holding had a tough time with a drop of more than 18%.
When talking about the ancillary cannabis index, things don’t seem to be painting the same picture. The negative impact on these companies has left more than one investor wondering what the best decision is when it comes to getting into the cannabis world.
According to reports, the Cannabis Ancillary Index has been a terrible sector throughout the year, and August was a clear example of that. Over the past month, it declined 10.4% to 24.43.
Different from the overall cannabis stock index rally of 3.0%, the Cannabis Ancillary Index has declined 5.6% since June 30. Year to date, the year-to-date performance has been very poor, with the index falling more than the overall market, dropping 62.0%.
While there were some stocks that performed well, their gain was barely 5%. These companies were Chicago Atlantic Real Estate, AFC Gamma and Hydrofarm. Leafly, was the worst performing stock, falling 71.4% and 84.2% in 2022. The comparison seems to be clear and important for investors who are soon to make new decisions in the market.