CBD is driving the American Cannabis Operator Index higher

770 0

The index was first introduced last October and continues to show gains

Last October, the American Cannabis Operator Index (ACOI) made its debut. It started with a value of 100 and dropped to a low of 70.64 in December after having climbed as high as 124.16 in November. Ever since that December low, it has been on a winning streak and continues to push higher, increasing almost 50% over the past three months.

The ACOI closed out March 8.9% higher than what was seen at the end of February. Year-to-date, the index is 48.4% higher, making it one of the best performers so far this year. Since it dropped to 70.64 in December, it has rebounded a total of 62.4%.

The index included 23 companies last month, of which 18 are multi-state operators (MSO) and five are companies that focus on industrial hemp and cannabidiol (CBD) extraction. Many of the MSOs are now pursuing CBD strategies, in addition to their licensed cannabis businesses, in order to become more diversified and the move is paying off. Nine companies have seen gains in the double digits, while only three have seen double-digit losses.

The best performers include Harvest Health and Recreation, CB Sciences, Charlotte’s Web, Cresco Labs, Origin House and others.

For this month, there will be two companies added to the index and one removed. DionyMed Brands and Plus Products will make their debut and Dixie Brands is going to be eliminated. That elimination comes as Dixie’s daily average trading value has dropped below the requisite lower threshold of $100,000 in the U.S.