The marijuana market in America is booming! Viridian Capital Advisors report that cannabis-related stocks grew 236% in their 2016 performance. The “fairly straightforward assessment” compares and contrasts the 236% growth of marijuana stocks with the S&P, which only grew 10% in 2016.
Viridian Capital Advisors developed a Cannabis Stock Index. The Cannabis Stock Index follows over 50 publicly traded marijuana companies. The criteria for making the Cannabis Stock Index are:
- A $10 million market capitalization
- An average daily trading volume of at least $20,000
- A float (outstanding shares) of at least 25 percent
- Financial reports filed on time for at least the last six months
- *Check to ensure it does not need to be OTCQB or higher…
In addition to the Cannabis Stock Index, MJIC, Inc. also created the Marijuana Index. The North American Marijuana Index tracks the leading stocks operating in the legal cannabis industry in the United States and Canada. The North American Marijuana Index is broken down into two country sub-indices: the U.S. Marijuana Index and the Canadian Marijuana Index. All three indices began on January 2, 2015 with an inception value of 100.00 points. The indices are equal-weighted, giving the same importance to each stock in the index. The indices are rebalanced quarterly, occurring on the last day of March, June, September, and December of each year. Between rebalancing dates, the indices deviate from an equal weighting. The criteria for qualifying in the Marijuana Index is as follows;
- Business strategy focused on marijuana or hemp
- Companies must trade on one of the following exchanges:
- NORTH AMERICAN MARIJUANA INDEX – NYSE/AMEX, NASDAQ, OTCQX, OTCQB, TSX, TSX Venture, CSE
- U.S. MARIJUANA INDEX – NYSE/AMEX, NASDAQ, OTCQX, OTCQB
- CANADIAN MARIJUANA INDEX – TSX, TSX Venture, CSE
- Minimum Trading Standards. Companies must meet minimum trading requirements to be included on our indices. Each company is assigned a daily Trading Score based on a weighted average of its volume, market capitalization, and share price. To be included on our indices, companies must achieve a quarterly average Trading Score of 20, which equates to a minimum market capitalization of $30 million, daily trading volume of $400k and share price of $0.10. Companies with at least $5 million of revenues over the prior year are exempt from the above trading requirements. All dollars in $USD.
Both indices are innovative and timely. Their parent companies are forward-thinking and ahead of the curve. The marijuana industry is only going to get bigger!
Another timely innovation the launch of Green Leaf Farms Holdings, LLC (Green Leaf Farms). Green Leaf Farms is one of the portfolio companies of Player’s Network, Inc. (PNTV). Green Leaf Farms has been granted Cultivation and Production license(s) from the state of Nevada and are close to opening its 26,000 sq. ft. facility in North Las Vegas. The timing is opportune due to recreational use of marijuana being passed in the last elections. Nevada is expected to be one of the world’s largest markets for marijuana.