For the trading week ended April 8, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 9.2% compared to the prior week when it decreased by 10.0%. The index consists of 25 stocks, many of which are among the most widely held holdings of the 3 ETFs (MJ, CNBS, and THCX) that I consider to be a reliable barometer of the Canadian cannabis sector. A close-up of a green plant description automatically generated with low confidence Image by Herbal Hemp from Pixabay MCCCI's differentiated business model is both weighted and market capitalization based because I believe that this approach best represents the current landscape of the Canadian cannabis sector. Now let us look at this week’s good, bad, and ugly stocks, shall we?
Image by Herbal Hemp from Pixabay
The Good
There was 1 stock that increased by more than 10%, which is my metric for inclusion in this category: FLWPF +20.0%. The Flower did not report any news, and this 3rd quartile stock is subject to further froth.
The Bad
There were 3 stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: HEXO –13.3%, OGI –10.8%, and TLRY –10.4%.
The Ugly
There was 1 stock that decreased by 20% or more, which is my metric for inclusion in this category. VLNS –20.5%. The Valens Company Inc. has the dubious distinction of being a repeater on the “ugly” list. Valuation Metric Review There was a decrease of 9.2% in the “Big Four” compared to last week when there was a decrease of 10.3%. The volatility of the sector continues, compounded by ongoing geopolitical issues.
Recap
2 of the 22 stocks in the portfolio increased. There was no change in the relative strength index compared to the prior week when there was a decrease of 9.0%. Let us see how this volatile sector has performed at the same time next week shall we?
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