E The Canadian Cannabis Report - Monday, Apr. 19

The Canadian Cannabis Report- Monday, April 19 For the trading week ended April 16, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 5.9% compared to the prior week when it decreased by 9.4%. The index consists of 25 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. MCCCIs 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?

Herb, Hemp, Plant, Cab, Cannabinoid

Image Source: Pixabay

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 7 stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: NCNNF -18,6%, OGI -17.4% NEPT -16.1%, HEXO -14.6%, APHA -13.1%, ACB -11.6% and ALEAF -10.8%. Organigram Holdings Inc. and Aphria Inc. are repeaters from last week. OGIs price target was cut 4/16/21 and APHA shareholders approved the merger with Tilray, Inc.(TLRY) on 4/15/21. I recently sent a 2nd alert to my private clients regarding my concerns regarding how these 2 top quintile stocks may trade on a short-term basis.

The Ugly

There was one stock that decreased by 20% or more, which is my metric for inclusion in this category: ZBISF decreased by 20.0%. There was a 5.5% decrease in the “Big Four” compared to last week when there was an 8.2% decrease.

Recap

There was a decrease of 8.5% in the relative strength index compared to last week when there was an increase of 8.5%. I believe that this literal 180-degree turn is a cautionary tale regarding the sector going forward. I believe that there will be further consolidation in the MCCCI, and I have drilled down on the constituents and admittedly it is a dice roll but perhaps Rubicon Organics Inc. (ROMJF), which has a market capitalization of $140M may appeal to a larger MSO for reasons which I’ve shared with my subscribers. Let us see how this volatile sector has performed at the same time next week shall we?

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