Nearly 20% Gains for Marijuana Stocks Last Month


Cannabis stocks rode through a roller-coaster of a January, along with the broader U.S. stock market. However, while many traditional U.S. stocks finished the month on a positive note, cannabis stocks fared slightly better as a whole. Impressively, the U.S. and Canada’s top performing marijuana stocks tracked by The North American Marijuana Index (combines the U.S. Marijuana Index and the Canadian Marijuana Index) managed to finish the month with an 18% increase.

In a nutshell, here’s how some of the marijuana stocks industry’s highs and lows over the past month played out:

January 1, California’s first day of legalized recreational weed sales, where cannabis companies across the industry saw $2 billion added sales. Shares in Canadian pot stocks companies also soared – Canopy Growth (9%), Aurora Cannabis (24%), Aphria (8%), MedReleaf (27%), Cronos Group (5%), and Canntrust (5%) – adding an additional $1.7 billion in value to the industry.

January 2, by the end of the day, the U.S. Marijuana Index experienced its greatest one-day gain – 13% – within the past year.

Announcements in the U.S. precede record decline in cannabis stocks gains; impact appears temporary for some marijuana stocks companies.

January 4, Attorney General Jeff Sessions repealed the Obama-era Cole Memo, which had offered certain protections to states with legalized marijuana. The U.S. Marijuana Index experienced its greatest one-day drop ever – 21%.

January 5, the U.S. Marijuana Index climbs back 11% from the previous day’s record low.

January 1-6, the Canadian Marijuana Index reported gains of 49% in these first six days of 2018 – with the exception of January 4, when even Canadian markets took a beating after Sessions’ federal push back. (To read more on why Canadian pot stocks were affected by Sessions’ actions, read Sessions’ Stand Against Pot Backfires, Raising Marijuana Stocks). 

Marijuana stocks in the USA experience the effects of legalization delays.

January 9, lawmakers in Maine considered a proposal to the voter-approved law that legalized recreational marijuana last year, which would extend the ban on retail sales of weed until the beginning of May while the state continues to sort out its rules about cannabis. In effect, more delays and more anticipated industry revenues lost.

Also on January 9, in Detroit a business group’s pending lawsuit over regulations of medical cannabis brought the city’s marijuana industry to a grinding halt until it is resolved.

January 22, Vermont moves forward in its quest to legalize marijuana, joining a growing list of U.S. states with legal cannabis programs.

The values of cannabis stocks in the U.S. rose from the low point on January 4 with some continued volatility.

The U.S. Marijuana Index recovered enough from its historic drop to report an overall 8% gain by the end of January.

Marijuana stocks in Canada finished January even stronger with overall gains of 22% on the Canadian Marijuana Index. Out of 24 companies on the Canadian index, 16 finished the month with notable gains. Three of those stocks – Abcann Global Corporation (ABCCF), Newstrike Resources Ltd. (NWKRF), and THC Biomed Intl Ltd. (THCBF) – experienced 90% gains; nine of the index stocks saw gains of 20% or more.

Some of the top out-performers in the cannabis industry in January were GrowGeneration Corp (GRWG), MariMed Inc (MRMD), and Kush Bottles (KSHB) – each one enjoying gains of more than 50%.

As for the top three cannabis companies with the greatest losses in January, Solis Tek (SLTK) shares fell 36%, CV Sciences Inc (CVSI) tumbled 33%, and MCIG Inc (MCIG) dropped 30%.

Cannabis stock investors who are along for the ride and possess patience to hang in through the roller-coaster moments are likely heartened by the resilience of the industry. Thankfully, January ended on a high note.

(For more information on cannabis stocks performance in January, read Growth Gains: Marijuana Stocks in North America.)


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