You’re reading a copy of this week’s edition of New Cannabis Ventures’ weekly newsletter, which we’ve been publishing since October 2015. The newsletter includes unique information to help our readers stay ahead of the game as well as links to the most important events of the week. new.
5 weeks ago we published here how “extremely oversold” cannabis stocks were at the time. In this newsletter, we pointed out that investor sentiment was too negative at the time, and we believe investors are still not so optimistic about the sector.
July was a great month for cannabis stocks. It was a very short month for traders at only 20 days, but the optimism we expressed in June paid off. Our three model portfolios at 420 Investor rose 19.3-21.7% during the month, well ahead of the index.
In July, the Global Cannabis Stock Index rebounded 4.3%, less than half the return of the S&P 500, which gained 9.2%. While our sector lagged, this was the first monthly gain in 17 months. We took off from the lowest closing price in its nearly 10-year history on June 30.
Last week, our sector lost 4.6%, while the S&P 500 gained 4.3%, distorting the month’s relative performance. Despite the delay, we are encouraged by the action. MSOs, as measured by the American Cannabis Operators Index, rose sharply during the month. This index gained 18.8% during the month. We will publish an article later today that will explain the move. As for MSO shares in the Global Cannabis Stock Index, all six rallied, with Cresco Labs, up 36.6%, and Green Thumb Industries, up 14.8%, leading the way. We wrote about performance last week, and there were three declines of over 20% that held this index back. The median of index names beat the average by 1.2%.
We remain optimistic for the second half of the year, noting low valuations, negative sentiment and improving fundamentals due to several states launching adult use.
TILT Holdings, a combination of large cannabis companies that provide products and services to companies operating in the industry, will release its second quarter results on August 15. Analyst expectations point to 15% annual growth in second-quarter revenue to $56 million, with adjusted EBITDA expected to be $5 million. TILT Holdings, which grew 17.7% in July, has a unique business model, an ancillary company with cannabis operations in three states with a fourth launch soon. Earlier this month, the company, in partnership with the Shinnecock Indian Nation of New York, opened a historic tribal-owned cannabis business in Southampton, NY.
Keep up to date by visiting the TILT Holdings Investor Dashboard which we maintain on their behalf as a client of New Cannabis Ventures. Click the blue Follow Business button to keep up to date with its progress.
Cannabis technology company Fyllo offers regulatory software solutions as well as marketing solutions for the industry. We last spoke with CEO and Founder Chad Bronstein in 2020 when the company was in the process of integrating the acquisition of CannaRegs. In this exclusive interview, we catch up to see how the company has grown since then.
The global cannabis stock index posted a gain for the first time in 17 months, rising 4.3% in July. The index, which includes 26 names, is down 53.1% this year so far after falling 26% in 2021. We discuss both the strongest and weakest stocks in this exclusive.
XS Financial provided a $15 million leasing facility to Green Dragon/Eaze with an immediate drawdown of over $2 million to purchase equipment. The equipment will lead to upgrades to existing processing facilities and construction for their expansions in Colorado and Florida. “Having access to non-dilutive financing is a huge win for our shareholders,” said Trey Handley, CFO of Green Dragon/Eaze.
Despite the strong performance of its Zig-Zag and Stoker products, Turning Point Brands reported second-quarter net sales fell 16.1% year-on-year to $102.9 million. Zig-Zag and Stoker’s Products combined net sales showed resilience, declining 0.9% for the quarter.
Tilray Brands reported fourth-quarter cannabis revenue fell 3% sequentially to $53.3 million. President and CEO Irwin D. Simon said, “Over the past year, we have accelerated the optimization of our operations and refined the execution of our most profitable core business opportunities in the areas of medicine, adult, wellness and alcoholic beverages in Canada and Europe. , and the United States”
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Alain and Joel
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