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For the week ending April 11, 2025, my proprietary Canadian Cannabis Company Index (MCCCI) declined by 2.9%. This index, comprising 14 stocks, reflects the performance of the Canadian cannabis sector and primarily focuses on its key players influenced by substantial holdings in the ETFs MJ, CNBS, and THCX. The MCCCI's distinct business model is both weighted and based on market capitalization, as I believe this method best represents the current landscape of the Canadian cannabis sector. Now, let's examine this week’s good, bad, and ugly stocks, shall we?

The Good Stocks

No stocks increased by over 10%, which serves as my benchmark for inclusion in this category.

The Bad Stocks

Two stocks fell by over 10% (but less than 20%), which serves as my benchmark for inclusion in this category. TerrAscend Corp. (TSNDF), which was an “ugly” stock in the previous week, decreased by 18.8%. On 4/11/25, the company declined sharply on volume of 15.2M, which is more than 60 times its 90-day average volume of 249K. I have made my private clients aware that TSNDF is worthy of option trading consideration. Tilray, Inc. (TLRY) fell 12.5% and faces a possible reverse split.

The Ugly Stocks

No stocks decreased by 20% or more, which serves as my benchmark for inclusion in this category.

Valuation Metrics Review

The index’s “Big 4” stocks CGC, CRON, TLRY, and TSNDF (two of which declined) collectively experienced a 5.5% drop. The stock price-based metric fell by 3.4%. These figures indicate a bearish trend with no immediate catalysts for the sector turnaround.

Recap

Of the 14 stocks in the MCCCI, five stocks increased. As discussed above, two of the highest capitalization portfolio stocks were “bad” stocks, which is a bearish indicator. Based on the current market conditions, the DEFCON level for the MCCCI remains at 2. Let's see how this volatile sector performs at the same time next week, shall we?

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The Canadian Cannabis Report- Monday, April 7
The Canadian Cannabis Report - Monday, March 31
The Canadian Cannabis Report - Monday, March 24