The Canadian Cannabis Report - Monday, Aug. 15

For the trading week ended August 11, my proprietary Canadian Cannabis Company Index (MCCCI) increased by 4.6% compared to the prior week when it increased by 7.6%. The index consists of 22 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. 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 were 6 stocks that increased by more than 10%, which is my metric for inclusion in this category: VLNS +23.3%, TGODF +16.7%, MEDIF +14.3% CGC +13.8%, ACB +12.9% and NEPT +10.4%. Neptune Wellness Solutions Inc. is a repeater on the “good” stock list.
 

The Bad

There were 2 stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: ROMJF -14.5% and TRSSF -12.4%.
 

The Ugly

There were no stocks that decreased by 20% or more, which is my metric for inclusion in this category.
 

Valuation Metric Review

There was an increase of 6.5% in the “Big Four” (3 of which increased) compared to the prior week when there was an increase of 9.2%. Based on the recent performance of this very important metric, there is growing evidence that the sector as a whole may be approaching equilibrium.
 

Recap

17 of the 22 stocks in the MCCCI increased, continuing the bullish trend. There was a decrease of 8.4% in the relative strength index compared to the prior week when there was an increase of 28.0%. (NOTE: due to a typo, 28.8% was incorrectly stated in the 8/8/22 CCR.) Let us see how this volatile sector has performed at the same time next week, shall we?

---

More By This Author:

The Canadian Cannabis Report - Monday August 8
The Canadian Cannabis Report - Monday, Aug. 1
The Canadian Cannabis Report - Monday, July 25