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The Canadian Cannabis Report- Monday, Jan. 15

For the trading week that ended January 12, 2024, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 7.4% compared to the prior week when it increased by 4.6%. The index consists of 14 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 was one stock that increased by more than 10%, which is my metric for inclusion in this category: OGI 21.6%. OrganiGram Holdings Inc. is the favorite cannabis stock of  Alan Brochstein, a leading industry spokesman.

The Bad

There was 1 stock that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: TLRY -18.9%. Tilray Brands, Inc. has recently pivoted to beverages which is my biew is not a game-changer.

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 8.0% decrease in the “Big Four” (3 of which decreased) compared to the prior week when there was a 6.0% increase. 

Recap

There was a 4.9% increase in the relative strength index compared to the prior week when there was no change (initially incorrectly reported). 5 of the 14 MCCCI stocks increased,. Let us see how this volatile sector has performed at the same time next week, shall we?

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