Image by Herbal Hemp from Pixabay
 

For the trading week that ended January 6, my proprietary Canadian Cannabis Company Index (MCCCI) increased by 6.5% compared to the prior week when it decreased by 1.7%. 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?
 

The Good

There were 7 stocks that increased by more than 10%, which is my metric for inclusion in this category: NEPT +105.2%, ROMJF +27.0%, TRSSF +24.6%, NXTTF +22.2%, CBWTF +16.0%, TGODF +16.0%, and ALEAF +13.3%. Ironically, the only news regarding Neptune Wellness Solutions Inc. was that it received a Nasdaq non-compliance notice on 1/5/23.
 

The Bad

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

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 an increase of 6.5% in the “Big Four” (3 of which increased) compared to the prior week when there was a decrease of 1.6%. Aurora Cannabis Inc. (ACB) was the outlier of the group, and decreased by 3.3%.
 

Recap

12 of the 21 stocks in the MCCCI increased. There was an increase of 18.8% in the relative strength index compared to the prior week when there was an increase of 3.2%. 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, Jan. 2
The Canadian Cannabis Report - Monday, Dec. 26
The Canadian Cannabis Report - Monday, Dec. 19