Image by Ria Sopala from Pixabay

For the trading week ended May 13, my proprietary Canadian Cannabis Company Index (MCCCI) increased by 8.7% compared to the prior week when it decreased by 7.0%. The index consists of 22 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% (but less than 20%) which is my metric for inclusion in this category.

The Bad

There 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 1 stock that decreased by 20% or more, which is my metric for inclusion in this category: MEDIF – 25.0%. On 5/16/22 MedifPharm Labs Corp. reported Q1 results which were better than expected and issued positive guidance for Q2. Based on the company’s market capitalization of $16M, in my view this stock may have a topsy-turvy trading pattern going forward.

Valuation Metric Review

There was an increase of 7.7% in the “Big Four” compared to last week when there was a decrease of 8.0%. I am closely monitoring the performance of this subset going forward, as it is a guidepost for the MCCCI and CGC, CRON and TLRY increased by more than 9% this week.

Recap

16 of the 22 stocks in the portfolio increased, which is a much better performance than the recent past. There was an increase of 7.8% in the relative strength index compared to the prior week when there was a decrease of 9.6%. Let us see how this volatile sector has performed at the same time next week, shall we?

Disclaimer:

The information provided in this article is for general informational purposes only.