For the trading week that ended May 19, 2023, my proprietary Canadian Cannabis Company Index (MCCCI) increased by 4.1% compared to the prior week when it decreased by 9.0%. The index consists of 16 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 3 stocks that increased by more than 10%, which is my metric for inclusion in this category: ACB +22.2%%, CRON +20.5%, and OGI +11.0%. Aurora Cannabis Inc. and OrganiGram Holdings Inc. were on the prior week’s “bad” 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: ROMJF -18.6% and MEDIF -16.1%, Rubicon Organics Inc. did not issue any news to clarify this downturn.

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 4.3% in the “Big Four” (3 of which decreased) compared to the prior week when there was a decrease of 15.4%. The top 10 market capitalization MCCCI stocks decreased. I continue to believe even if the SAFE Act were to pass, there would not be a meaningful effect on the space.

Recap

There was a decrease of 12.8% in the relative strength index compared to the prior week when there was an increase of 2.2%. 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, May 15
The Canadian Cannabis Report - Monday, May 8
The Canadian Cannabis Report- Monday, May 1