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For the (shortened) trading week that ended January 5, 2024, my proprietary Canadian Cannabis Company Index (MCCCI) increased by 4.6% compared to the prior week when it increased by 5.5%. 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 were three stocks that increased by more than 10%, which is my metric for inclusion in this category: CBWTF +20.5%, TSND +15.5% and CGC +11.7%. On 1/3/24 Auxly Cannabis Group announced term sheet to extend credit facility for up to three years. 

The Bad

There were were no stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category.

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 a 4.3% increase in the “Big Four” (3 of which increased) compared to the prior week when there was a 6.0% increase. 

Recap

There was no change in the relative strength index compared to the prior week when there was a 13.9% increase. I am reviewing the relevance of this metric and will likely make a change for 2024. 6 of the 14 MCCCI stocks increased, to which I do not attribute any significance since ss during the holiday season trading tends to dissipate. Let us see how this volatile sector has performed at the same time next week, shall we?

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The Canadian Cannabis Report- Monday, Jan. 1
The Canadian Cannabis Report - Monday, Dec. 25
The Canadian Cannabis Report - Monday, Dec. 18