The Canadian Cannabis Report- Monday, Dec. 27

For the (shortened) trading week ended December 23, there was no change in my proprietary Canadian Cannabis Company Index (MCCCI) compared to the prior week when there was a decrease of 2.5%. 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.

Image by Herbal Hemp from Pixabay

The 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.

The Good

There were 4 stocks that increased by more than 10% which is my metric for inclusion in this category: MEDIF +27.3%, EMHTF + 14.3%, WDDMF +13.8% and NEPT +13.5%. On 12/21/21 MediPharm Labs Corp. issued a positive operational update which may have spiked interest in the stock, which has decreased 57.5% YTD.

The Bad

There were no stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this.

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 no change in the “Big Four” compared to the prior week when there was a decrease of 2.9%.

Recap

There was a decrease of 3.9% in the relative strength index compared to the prior week when there was a decrease of 2.3%. Let us see how this volatile sector has performed at the same time next week shall we?