For the trading week ended April 15, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 1.2% compared to the prior week when it decreased by 9.2%. 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?

Image by Herbal Hemp from Pixabay

The Good

There was 1 stock that increased by more than 10% (but less than 20% which is my metric for inclusion in this category: OGI + 16.8%. On 4/12/22 OrganiGram Holdings Inc. issued a positive earnings report which investors embraced.

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 1.6% in the “Big Four” compared to last week when there was a decrease of 9.2%. In my view, whether this subset stabilizes going forward is a coin toss.

Recap

5 of the 22 stocks in the portfolio increased. There was a decrease of 2.2% in the relative strength index compared to the prior week when there was no change. Let us see how this volatile sector has performed at the same time next week shall we?