The Canadian Cannabis Report - Monday, Dec. 26 For the trading week that ended December 23, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 13.4% compared to the prior week when it decreased by 7.7%. (initially incorrectly reported) The index consists of 21 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 3 stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: DLTNF -13.7%, TLRY -12.2%, and OGI -10.5%. The recent $5M ATM stock offering by Delta 9 Cannabis Inc. has not been well-received by the market as shown by the company being on the “bad” list for the last 2 weeks.
 

The Ugly

There were 2 stocks that decreased by 20% or more, which is my metric for inclusion in this category: TGODF -24.3%, and TRSSF -24.0%. The Green Organic Dutchman Holdings Ltd. was on the “bad” stock list in the prior week, and the market has not responded well to its upcoming merger with BZAM Cannabis. TerrAscend Corp. was also on the “bad” stock list in the prior week, and I do not foresee a catalyst that would make me become bullish on the company.
 

Valuation Metric Review

There was a decrease of 6.3% in the “Big Four” (all of which decreased for the 3rd consecutive week) compared to the prior week when there was a decrease of 6.2%. (initially incorrectly reported)
 

Recap

Only 3 of the 21 stocks in the MCCCI increased, which is another indicator of the continued froth in the sector. There was an increase of 14.8% in the relative strength index compared to the prior week when there was no change. Let us see how this volatile sector has performed at the same time next week, shall we? 

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