The NICI Indices are off to a great start, trouncing the broader markets and posting big gains in our model portfolios.
There’s a lot to keep track of with cannabis investing, and it’s hard to find tools that just let you know how the market as a whole is performing.
That’s why, at the National Institute for Cannabis Investors, we launched three indices to help give our members a general sense of how the biggest names in cannabis are performing. The three cannabis indices we have constructed are the NICI 50, the NICI US, and the NICI Wellness.
They provide a window into the booming field of cannabis and a front seat to an industry well on its way to creating $1 trillion in value.
All three are on a tear this year, trouncing the broader market as one obstacle after another is cleared away from the path to a thriving and open market for marijuana and CBD.
To find these indices on our site, all you have to do is look at the bottom of any page.
It will look like this:
When you click on them, you can see their performances over the last month, three months, or six months. You can also see how they have performed over the past year and all time.
Triple the Gains of the S&P
The best performer of the three is the NICI 50. This index was built to track the performance of the 50 largest global, publicly traded stocks. So long as the company earns 50%+ revenue from cannabis-related business or is redirecting a substantial portion of its strategy and capital to this sector, it’s a candidate for the index.
So far this year, the NICI 50 is up 39%, which triples the 12.7% return of the S&P 500 year-to-date.
These companies own the cannabis cultivation, processing facilities, and retail storefronts, and they returned over 55% on average for the year. They stand to benefit the most from vertical integration in what is still, and will be for a while, a very fragmented market. And, based on how earnings season is unfolding, they are posting strong results.
Four other stocks in our subscriber portfolios outperformed this sector, however. One is a cultivator with one of the strongest reputations for producing high-end product. It’s returned 75% so far this year.
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The other is leading the way with retail and distribution in California. It’s up nearly 60% and can now boast of having a major foothold in Canada as well.
And our two health and wellness cornerstone picks are both up well over 50% as 2019 is indeed proving to be “The Year of CBD.” And as our Cannabis Investor’s Report members know well, no one can stop it.
And Innovative Industrial Properties (NYSE: IIPR) is proving that stepping in where banks fear to tread (though not all) is good business. This cannabis REIT, which we recommended to readers months ago, is up over 118%, more than doubling in price since we first introduced it to members.
Big Gains for Industry Leaders
The other two indices, the NICI US and NICI Wellness, have also posted strong performance for the year and soundly outpaced the S&P 500 as well.
The NICI Wellness Index has returned nearly 31% so far this year. It tracks the performance of companies primarily focused on deriving pharmaceuticals or health related products from cannabis or designing products for the endocannabinoid system.
This index includes the leading CBD players in the world and our CBD picks have outperformed them all so far this year.
The NICI US is up just over 23%. This index includes the largest cannabis companies primarily focused on the U.S. cannabis market. Innovative Industrial was the highest performer of the index followed closely by two other Cannabis Investor’s Report picks.
Rounding out the remainder of the top five are Truelieve Cannabis Corp. (CSE: TRUL, OTC: TCNNF) and Green Thumb Industries (CSE: GTII, OTC: GTBIF), returning 53% and 68% respectively this year. Subscribers to our NICILytics database know these companies well. These rapidly growing multi-state operators have earned high NICI ratings and are among the handful of future outperformers that we are keeping a close eye on.
If you want to read more about companies like this or are driven to dig in and research any of the 150 names in our database for yourself, be sure to click here to find out how to access the most comprehensive investing tool in cannabis.
It’s full of hidden gems and up-and-comers, including ones that are simply too small to recommend to Cannabis Investor’s Report members. This includes companies like a small but well-run Canadian company that has quietly amassed a multifaceted portfolio of global subsidiaries on three continents.
It’s still under the radar, but as the global legalization wave surges forward, it won’t be for long.
Thanks for being an integral part of the National Institute for Cannabis Investors,
Executive Director, National Institute for Cannabis Investors
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21 responses to “Take a Look at These Stocks Driving the Cannabis Rally”
March 22 2019