For the trading week that ended April 6, 2023, my proprietary Canadian Cannabis Company Index (MCCCI) increased by a de minimis 0.71% compared to the prior week when it decreased by 1.9%. The index consists of 17 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?

Image by Herbal Hemp from 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 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 decrease of 2.4% in the “Big Four” compared to the prior week when there was a decrease of 3.3%. Canopy Growth Corporation (CGC) is now in a 6-week tailspin which has greatly benefitted my private clients with option exposure

Recap

1 of the 17 stocks in the MCCCI increased; Tilray Inc. (TLRY) was up 3.2%. There was a 43.7% increase in the relative strength index compared to the prior week when there was a 3.2% decrease. However, this increase is a statistical aberration caused by the absorption of VIVO Cannabis Inc. (VVCIF)- which I called a “zombie stock” in the prior week’s report- by MediPharm Labs Corp (MEDIF). I do not see that any meaningful synergy on the horizon from this business combination which was announced on 4/3/23. As a result of this transaction, there is 1 less stock in the MCCCI portfolio. Let us see how this volatile sector has performed at the same time next week, shall we? :

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