The Canadian Cannabis Report - Monday, Aug. 30

For the trading week ended August 27, my proprietary Canadian Cannabis Company Index (MCCCI) increased by 4.7% compared to the prior week when it decreased by 11.2%. The index consists of 23 stocks, many of which are among the most widely held holdings of the 3 ETFs (NY: 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.

Image by Herbal Hemp from Pixabay

The Good

There were 3 stocks that increased by more than 10%, which is my metric for inclusion in this category: NEPT +18.7%, ALEAF +13.5% and OGI +11.0%.

The Bad

There was 1 stock that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: RDDTF -11.3%.

The Ugly

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

Recap

There was an increase of 4.3% in the “Big Four” compared to the prior week when there was a decrease of 6.1%. The relative strength index increased by 5.3% compared to the prior week when it decreased by 9.5%.

In summary, all 3 MCCCI metrics rebounded from the prior week’s poor performance.

Let us see how this volatile sector has performed at the same time next week, shall we?