Image by Herbal Hemp from Pixabay

For the trading week that ended April 14, 2023, my proprietary Canadian Cannabis Company Index (MCCCI) increased by 2.8% compared to the prior week when it creased by a de minimis 0.71%.

The index consists of 17 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?

The Good

There were 2 stocks that increased by more than 10%, which is my metric for inclusion in this category: Lifeist Wellness Inc. +34.3% and MediPharm Labs Corp. +16.7%. In my view, LFSWF still needs to prove itself long-term. I have previously said that MEDIF is a mediocre company with limited upside potential.

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: OrganiGram Holdings Inc. -11.3%. I believe that OGI is in for a rough road ahead based on their Q2 earnings miss.

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 a decrease of 6.6% in the “Big Four” compared to the prior week when there was a decrease of 2.4%. Canopy Growth Corporation (CGC) lost 9.2% and is mired in a 7-week tailspin which has resulted in historic % gains for private clients of mine who trade options - for which I simply don’t have the proper constitution.

Recap: 5 of the 17 stocks in the MCCCI increased. There was an increase of 8.7% in the relative strength index compared to the prior week when there was a 43.7% increase. 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, April 10
The Canadian Cannabis Report - Monday, April 3
The Canadian Cannabis Report - Monday, March 27