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For the trading week ended September 6, 2024, my proprietary Canadian Cannabis Company Index MCCCI decreased by 6.5% compared to the prior week when it decreased by 10.4%. 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 no stocks that increased by more than 10%, which is my metric for inclusion in this category.

The Bad

There were 2 stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: CGC -17.0% and ACB  -12.9%. Canopy Growth Corporation has earned the dubious distinction of being a “bad stock” for 3 consecutive weeks.

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 6.4% decrease in the “Big 4” (all of which decreased for the 3rd consecutive week) compared to the prior week when there was an 11.1% decrease.  This reinforces my view that the sector is deeply mired in bearish territory. The stock-price based metric decreased by 8.5% compared to the prior week when it decreased by 12.5%.

Recap

There was an 8.1% decrease in the relative strength index compared to the prior week when there was a 1.6% decrease. None of the 14 MCCCI stocks for the 2^nd consecutive week. Based on the totality of negative indicators, I believe that a DEFCON 1 alert remains appropriate.

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, Sept. 2
The Canadian Cannabis Report - Monday, Aug 26
The Canadian Cannabis Report - Monday Aug. 19