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For the trading week ended December 20, 2024, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 1.4% compared to the prior week when it decreased by 8.6 %. The index consists of 14 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 was 1 stock that increased by more than 10%, which is my metric for inclusion in this category: ROMJF +10.1%. Rubicon Organics Inc. has been on an upward trend since they obtained a secured credit agreement last month.

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: CBWTF -13.9% On 11/8/24 Auxly Cannabis Group Inc. reported lackluster Q3 results of operation and the stock has trended downward since then.

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 1.8% decrease in the “Big 4” (3 of which decreased) compared to the prior week when there was a 9.5% decrease. The stock-price-based metric decreased by 4.6% compared to the prior week when it decreased by 8.6%.

Recap

There was a 1.4% decrease in the relative strength index compared to the prior week when there was a 8.6% decrease. 3 of the 14 MCCCI stocks increased, as froth hamstrings the sector. DEFCON 1 alert remains in effect, given challenging metrics. Let us see how this volatile sector has performed at the same time next week, shall we?

Author’s Note: Apologies that ongoing health issues have caused a temporary sabbatical from my weekly report.

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The Canadian Cannabis Report - Monday, Nov 25
The Canadian Cannabis Report - Monday, Nov 18
The Canadian Cannabis Report- Monday, Nov 11