Photo by Kimzy Nanney on Unsplash

For the trading week that ended August 25, 2023, my proprietary Canadian Cannabis Company Index (MCCCI) decreased 10.7% compared to the prior week when it increased 2.6%.The index consists of 15 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 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: ACB -13.6%, CGC -13.3% and TLRY -12.6%. Aurora Cannabis trades at $0.44 and has a dim future.

The Ugly

There was 1 stocks that decreased by 20% or more, which is my metric for inclusion in this category: NEPT -27.0%. Neptune Wellness Solutions Inc. is a 4th quartile MCCCI stock which trades at $0.19 and has a quant rating of sell. Valuation Metric Review There was a 10.7% decrease in the “Big Four” (all of which decreased) compared to the prior week when there was a 2.5% increase. I remain neutral on the group for the foreseeable future. Recap There was a 9.5% decrease in the relative strength index compared to the prior week when there was a 5.0% increase. Only 2 of the 15 MCCCI stocks increased. 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, Aug. 21
The Canadian Cannabis Report - Monday, Aug. 14
The Canadian Cannabis Report- Monday, Aug. 7