For the trading week ended June 24, my proprietary Canadian Cannabis Company Index (MCCCI) was unchanged compared to the prior week when it decreased by 4.3%. 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.

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MCCCIs 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? 

There was 1 stock that increased by more than 10%, which is my metric for inclusion in this category: HEXO +20%. HEXO Corp. Is a very volatile stock, as evidenced by the fact it was on the prior week’s “ugly” list. The Bad There were 2 stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: ALEAF –16.7% and CBWTF –11.1%. The Ugly There was 1 stock that decreased by 20% or more, which is my metric for inclusion in this category: NEPT -44%. Neptune Wellness Solutions Inc. has the dubious distinction of being the 1st MCCCI stock to be on the “ugly” list for 3 consecutive weeks. In my view, NEPT may very well be headed for extinction.

Valuation Metric Review

There was a decrease of 9.4% in the “Big Four” (all of which decreased for the 3rd consecutive week) compared to the prior week when there was a decrease of 15.0%. Recap 14 of the 22 stocks in the portfolio increased, and the "Big Four” further rebounded sharply by 9.5%. There was a increase of 2.9% in the relative strength index compared to the prior week when there was a decrease of 2.9%. All in all, the past week was positive in the 3 metrics on which the MCCCI is based. Let us see how this volatile sector has performed at the same time next week, shall we?