Amid strength in the broader equity market, cannabis stocks performed well last week. Between January 4 and January 11, the Horizons Marijuana Life Sciences Index ETF (HMMJ), which tracks the North American Medical Marijuana Index, has returned 17.5%, while the ETFMG Alternative Harvest ETF (MJ) returned 13.6%. In comparison, the S&P 500 Index rose 2.5% during the same period.
Of the ten stocks considered for our analysis, eight stocks delivered positive returns, while the stock prices of two companies declined last week. During the period, Wayland Group (MRRCF) posted a strong performance with returns of 20.4%. Wayland Group was followed by The Green Organic Dutchman Holdings (TGODF) and Planet 13 Holdings (PLNHF) with returns of 17.9% and 10.4%, respectively.
On January 8, The Green Organic Dutchman Holdings announced the appointment of Caroline MacCallum, an expert in cannabinoid-based medicine, and Jacques Dessureault, who has had an extensive pharmaceutical career, to its board. The optimism surrounding these appointments drove the company’s stock last week. On January 7, Planet 13 Holdings announced that its revenue and customer count at its Superstore in Las Vegas grew in December. The announcement appears to have contributed to the rise in its stock price.
Also, during the same period, Origin Agritech (SEED), Curaleaf Holdings (CURLF), VIVO Cannabis (VVCIF), Trulieve Cannabis (TCNNF), and iAnthus Capital Holdings (ITHUF) have returned 9.8%, 5.2%, 5.2%, 4.2%, and 1.5%, respectively.
However, the stock prices of MedMen Enterprises (MMNFF) and Acreage Holdings (ACRGF) fell by 4.9% and 1.9%, respectively, during the last week. On January 8, two of MedMen’s biggest investors, Brent Cox and Omar Mangalji, sued the company for “alleged breaches of fiduciary duty,” which led to a fall in the company’s stock price.