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For the week ending April 25, 2025, my proprietary Canadian Cannabis Company Index (MCCCI) increased by 8.5%, compared to the prior week when it increased by 1.3%. This index, comprising 14 stocks, reflects the performance of the Canadian cannabis sector and primarily focuses on its key players influenced by substantial holdings in the ETF’s MJ, CNBS, and THCX. The MCCCI's distinct business model is both weighted and based on market capitalization, as I believe this method best represents the current landscape of the Canadian cannabis sector. Now, let's examine this week’s good, bad, and ugly stocks, shall we?

The Good Stocks

Three stocks increased by over 10%, which serves as my benchmark for inclusion in this category. Canopy Growth Corporation (CGC) increased by 25.8%. This stock was also a “good” stock last week and is subject to option activity. TerrAscend Corp. (TSNDF) gained 20.5% and Rubicon Organics Inc. (ROMJF) was up 14.5%. These are unprecedented advances for 2025. Of more significance is that CGC and TSNDF are two members of the “Big 4.”

The Bad Stocks

No stocks fell by over 10% (but less than 20%), which serves as my benchmark for inclusion in this category.

The Ugly Stocks

No stocks decreased by 20% or more, which serves as my benchmark for inclusion in this category.

Valuation Metrics Review

The index’s “Big 4” stocks CGC, CRON, TLRY, and TSNDF (all of which increased) gained 8.8% compared to the prior week, when there was no change. The stock price-based metric increased by 8.7%. These figures suggest the malaise in the sector may have bottomed out, at least for the short term.

Recap

Of the fourteen stocks in the MCCCI, ten stocks increased. As discussed above, two of the highest capitalization portfolio stocks were “good” stocks, which is a bullish indicator. I am adjusting the MCCCI DEFCON level to 3 pro temp based on the current market conditions. Let's see how this volatile sector performs at the same time next week, shall we?

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