A Sudden Sharp Shift in Sentiment for Cannabis Stocks

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Cannabis
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Friends,

After
a
rough
start
to
the
year,
cannabis
stocks
exploded
higher
this
week,
with
the
New
Cannabis
Ventures Global
Cannabis
Stock
Index
 rallying
16.3%.
We
checked
the
last
few years,
and
this
was
the
best
performance
since
the
week
ending
1/5/18,
when
the
market
jumped
16.6%,
and
the
week
before,
12/29/17,
when
it
soared
20.7%
as
the
implementation
of
California
legalization
was
about
to
begin.

Driving
the
index
higher
was
the
largest
Canadian
LPs,
with
the
New
Cannabis
Ventures Canadian
LP
Tier
1
Index
 surging
22.5%
during
the
week.
These
9
stocks,
along
with
Sundial
and
Tilray,
represent
27%
of
the
broader
market
index.
The
recent
low
nearly
matched
the
prior
multi-year
low
set
in
November,
creating
the
potential
of
a
“double-bottom”
that
would
hopefully
signal
the
end
of
the
downturn
that
began
in
late
March:

The
rally
in
the
beaten
up
large
LPs
and
other
names
follows
two
years
of
sharply
negative
returns
for
the
sector
that
followed
two
very
strong
years.
We
have
been
expecting
the
market
to
bottom,
but
the
timing
has
been
elusive.
Tuesday
began
with
disappointing
results
and
a
diminished
outlook
for
Aphria
that
only
marginally
hurt
its
price
while
not
really
impacting
the
stocks
of
its
peers.
After
the
close
on
Tuesday,
Organigram
reported
number
that
were
much
stronger
than
expected,
though
many
analysts
quickly
pointed
to
a
large
portion
of
the
revenue
coming
from
an
unexpected
and
potentially
difficult
to
repeat
source,
wholesale.
Nevertheless,
the
market
took
off.
Capping
off
the
week,
Canopy
Growth
delayed
the
roll
out
of
beverages,
and
the
stock
rallied
despite
this
marginal
setback.

The
improved
sentiment
extended
beyond
the
large
Canadian
LPs
into
the
broader
market,
with
volumes
accelerating
and
many
names
moving
substantially
higher.
While
the
capital
crunch
will
persist
and
likely
weigh
on
the
market
this
year,
it
seems
as
though
traders
and
investors
may
be
realizing
that
the
worst
is
probably
behind
for
most
companies.
For
example,
the
vaping
crisis
appears
to
have
played
out.
We
continue
to
point
to
improvements
in
the
product
set
as
well
as
distribution
in
Canada
and
what
we
expect
to
be
very
strong
and
profitable
growth
for
some
of
the
largest
MSOs
as
positive
factors
in
2020.
Additionally,
we
expect
to
see
more
states
embrace
adult-use
and
medical
cannabis
through
the
ballot
box
and,
increasingly,
legislative
action,
a
theme
that
is
already
playing
out
in
just
the
first
few
weeks
of
the
year.


Genomic
research
from
turn-key
solutions
provider,
NRGene,
the
sponsor
of
today’s
newsletter,
shows
that
using
genomics
in
cannabis
&
hemp
breeding
programs
can
accelerate
time
to
market
by
20%-40%. The
company
is
inviting
breeders
and
growers
to
take
the
first
steps
towards
a
more
sophisticated
breeding
program
using
their
cutting-edge
AI
technology,
tailored
to
any
traits
of
interest. To
learn
more
or
to
apply
for
their
merit-based
grant
program, visit
their
website
here
.



New
Cannabis
Ventures
publishes
curated
articles
as
well
as
exclusive
news.
Here
is
some
of
the
most
interesting
business
content
from
this
week:


To
get
real-time
updates
download
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mobile
app
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or
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Alan
on Twitter. Share
and
discover
industry
news
with
like-minded
people
on
the
largest
cannabis
investor
and
entrepreneur
group
on LinkedIn.

Get
ahead
of
the
crowd!
If
you
are
a
cannabis
investor
and
find
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in
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newsletters, subscribe
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420
Investor
,
Alan’s
comprehensive
stock
due
diligence
platform
since
2013.
Gain
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in-depth
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sector,
including
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videos,
weekly
chats,
model
portfolios,
a
community
forum
and
much
more.

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
a
family
of
indices
to
track
Canadian
licensed
producers
as
well
as
the
American
Cannabis
Operator
Index.

View
the Public
Cannabis
Company
Revenue
&
Income
Tracker
,
which
ranks
the
top
revenue
producing
cannabis
stocks
that
generate
industry
sales
of
more
than
US$7.5M
per
quarter.

Stay
on
top
of
some
of
the
most
important
communications
from
public
companies
by
viewing
upcoming cannabis
investor
earnings
conference
calls
.


Discover
upcoming
new
listings
 with
the
curated Cannabis
Stock
IPOs
and
New
Issues
Tracker.


Find
your
place
in
the
cannabis
industry
 by
visiting
our Careers
and
Jobs Page
and
learn
which
companies
are
hiring
aggressively.

Sincerely,



Alan
&
Joel

Alan Brochstein, CFA
Based
in
Houston,
Alan
leverages
his
experience
as
founder
of
online
communities

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:

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