The Canadian Cannabis Report - Monday, June 13

For the trading week ended June 10, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 19.3% compared to the prior week when it increased by 8.0%. 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 no stocks that increased by more than 10%, which is my metric for inclusion in this category.
 

The Bad

There were 5 stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: TLRY -18.9%, ALEAF -14.2%, CGC -13.9%, TGODF -12.5%, and VLNS -12.0%.
 

The Ugly

There were 3 stocks that decreased by 20% or more, which is my metric for inclusion in this category: NEPT -26.7%, DLTNF -21.0%, and NXTTF –20.0%.
 

Valuation Metric Review

There was a decrease of 15.0% in the “Big Four” (all of which decreased for the 2nd consecutive week) compared to the prior week when there was a decrease of 3.7%. Tilray, Inc .has been a serial underperformer, and I have advised my private client's caveat emptor is the watchword here.
 

Recap

3 of the 22 stocks in the portfolio increased, and the increasingly suboptimal performance of the "Big Four” continues to further hamstring the MCCCI. There was a decrease of 4.3% in the relative strength index compared to the prior week when there was a decrease of 1.4%. Let us see how this volatile sector has performed at the same time next week, shall we?