It’s a bullish signal whenever companies are added to a widely followed index. It’s presumably going to be years before we see a cannabis company included in the Dow Jones Industrial Average, but we’ve already seen dozens added to the CSE Composite Index up in Canada.
After the close on Friday, FTSE Russell reconstituted their indices, and there are two cannabis-related stocks that have been added to the Russell Microcap Index, and another that has been added to the Russell 3000. This is a big deal for these small companies, given the fact that there’s just under $1 Billion in AUM for the iShares Micro-Cap ETF (NYSE:IWC) tracking the Russell Microcap Index, and three different ETFs tracking the Russell 3000. The combined AUM of the the Russell 3000 ETFs is nearly $9 Billion.
Here are 3 marijuana stocks likely to attract investors.
22nd Century Corp. (NYSE:XXII)
One of the marijuana-related stocks that has been added to the Russell Microcap Index following the 2017 reconstitution is XXII. 22nd Century Corp. is “a plant biotechnology company focused on genetic engineering and plant breeding which allows the increase or decrease of the level of nicotine in tobacco plants and the level of cannabinoids in cannabis plants.” Not too long ago, 22nd Century Corp. announced that they partnered with the University of Virginia to use hemp plants to clean up pollution. For more information on 22nd Century, be sure to check out the company’s stock profile in the Marijuana Stock Database. For more NYSE listed cannabis stocks, be sure to check out the NYSE-Listed Marijuana Stock Database.
Marrone Bio Innovations, Inc. (NASDAQ:MBII)
Another one of the cannabis-related companies that has been added to the Russell Microcap Index following the most recent reconstitution is MBII. Marrone Bio Innovations is “a leading provider of bio-based pest management and plant health products for the agriculture, turf and ornamental and water treatment markets.” Recently, Marrone Bio Innovations’ products were approved for use by marijuana cultivators in California. For more information on MBII, be sure to check out the company’s stock profile in the Marijuana Stock Database. For more NASDAQ listed cannabis stocks, be sure to check out the NASDAQ-Listed Marijuana Stock Database.
Zynerba Pharmaceuticals, Inc. (NASDAQ:ZYNE)
The third cannabis company that has been added to one of the Russell indices is ZYNE. Zynerba Pharmaceuticals, Inc. has officially been added to the Russell 3000 Index, which has even more assets benchmarked to it than the Russell Microcap Index. Zynerba is “a clinical-stage specialty pharmaceutical company focused on developing and commercializing proprietary next-generation synthetic cannabinoid therapeutics formulated for transdermal delivery.” Recently, the company completed its enrollment for Phase II trials for a treatment of Fragile X Syndrome Anxiety using CBD.
Given the total AUM tracking these Russell indices, it’s no wonder that this news is market moving. Beyond that, the companies being added to the index garner more attention from non-indexers looking to beat the Russell indices. These actively-managed micro-cap strategies seek out the best of the basket and ignore the rest. Given the growth prospects of the three companies listed above, we wouldn’t be surprised if we saw accumulation in the coming days.
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