A new financial measure aims to help cannabusiness investors and entrepreneurs track the performance of the broader industry.
Mentor Capital has developed a Cannabis Stock Index, a weighted average of the prices of selected industry stocks.
Given the heavy fluctuations in price and volume that are common to cannabis industry stocks, the index will try to provide the industry with a more stable, comprehensive performance indicator.
The company said it will update the chart weekly. Mentor Capital CEO Chet Billingsley said the index “is not targeted to be a day-trading chart.” Instead, the goal is “to display an overall picture of how the cannabis public sector is going over a longer period of time – usually (year-to-date),” he said.
Common in other industries, stock index reports can help investors and business people understand both current performance and trends in performance of a marketplace. The index includes 23 companies such as MedBox, GW Pharmaceuticals and Medical Marijuana Inc. as well as smaller firms like SK3 Group, Rapid Fire Marketing and Mentor Capital itself.
The index – updated over the weekend – is up 256% so far this year. The companies listed have a market cap of $3.1 billion.