Index Performance for the Week Ended January 6, 2017
The Viridian Cannabis Stock Index rose 3.8% in the first week of 2017 ended January 6, continuing its upward trend from the end of 2016.
We attribute the positive performance by the Index in this first week of 2017 to increased buying of cannabis stocks as investors seek to make new bets and repurchase securities they had sold for tax loss purposes following the New Year (January Effect).
For the week, ten of the twelve Index sectors showed positive gains, with only the Consulting Services and Infused Products & Extracts sectors seeing negative returns. Many of the sector returns were comparable to those of the major market indices, signifying a material part of this week's performance likely came from the January Effect.
Volume in the Index started strong in 2017 but declined through the first week of trading, adding further evidence to the January Effect as investors completed much of their repurchases in the first calendar day of trading. Even as volume declined, however, the Index proceeded to rise through week's end.
We anticipate the Index to experience increased volatility in the coming week or two as the process for the appointment of Jeff Sessions for US Attorney General proceeds.
The performance of the Viridian Cannabis Stock Index, as a whole and by sector, as well as in comparison to several major market indices, is detailed in the table below:
Viridian Cannabis Stock Index - Performance Year-to-Date
To learn more about the Viridian CANNABIS STOCK INDEX, contact:
Viridian Capital Advisors and its affiliates, as well as their respective partners, directors, shareholders, and employees may have a position in the securities mentioned herein and may make purchases and/or sales from time to time. Viridian Capital Advisors, may act, or may have acted in the past, as a financial advisor, fiscal agent, or underwriter for certain of the companies mentioned herein and may receive, or may have received, a remuneration for their services from those companies.
About the Viridian CANNABIS STOCK INDEX
The Viridian Cannabis Stock Index tracks the performance of approximately 50 publicly traded cannabis companies that meet three of the following four filter criteria:
- Market capitalization ≥ 10,000,000 USD
- Average daily trading volume ≥ 20,000 USD
- Float ≥ 25% of shares outstanding
- Financials filed on time in last 6 months
Stock performance is categorized into 12 different product/technology sectors that comprise the core business segments within the legal cannabis industry. These sectors are further differentiated into two segments, those that "touch the plant" and those that are providers of ancillary products and services.
The above information, whether in part or in its entirety, neither constitutes an offer nor makes any recommendation to buy or sell any securities.
About Viridian Capital Advisors, LLC
Viridian Capital Advisors is a financial and strategic advisory firm dedicated to the cannabis market. We provide market intelligence, investment banking, investor relations, and corporate development services to emerging growth companies and qualified investors in the cannabis sector. Our banking practice, through broker-dealer Pickwick Capital Partners, provides capital and M&A to fund the growth of our clients, while our advisory practice helps to position and build their businesses. Our team’s decades of high level operating and transactional experience on Wall Street in a variety of emerging sectors, allows Viridian to provide comprehensive strategic and financial solutions that assist cannabis enterprises in realizing their full potential.
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