E The Canadian Cannabis Report - Monday, Apr. 26

TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.


For the trading week ended April 23, my proprietary Canadian Cannabis Company Index (MCCCI) was virtually unchanged compared to the prior week when it decreased by 5.9%. 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?

Image by Herbal Hemp from Pixabay

The Good

There was 1 stock that increased by more than 10%, which is my metric for inclusion in this category: VLNCF +11.4% The Valens Company Inc. issued a press release on 4/21/21 which announced its entry into the Yukon market with a cannabis purchase and sale agreement with the Yukon Liquor Corporation (YLC). Sidebar: who knew that expansion into the Yukon Territory would be so bullish given their population density of 0.18 per square mile right?

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 no stocks that decreased by 20% or more, which is my metric for inclusion in this category. There was a de minimis decrease of 0.5% in the “Big Four” compared to the prior week when there was a decrease of 8.2%.

Recap

There was a decrease of 2.9% in the relative strength index compared to the prior week when there was a decrease of 8.5%. The overall performance of the MCCCI this week was the most static in the 59-week history of the index, which may presage that a “reversion to the mean” scenario is on the horizon. Let us see how this volatile sector has performed at the same time next week shall we?

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