For the trading week ended April 1, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 10.0% compared to the prior week when it increased by 25.9%. 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.

Image by Herbal Hemp from Pixabay

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?

The Good

There were no stocks that increased by more than 10%, which is my metric for inclusion in this category.

The Bad

There was 1 stock that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: HEXO –13.0% 

The Ugly

There was 1 stock that decreased by 20% or more, which is my metric for inclusion in this category. VLNS –26.9% 

Valuation Metric Review

There was a decrease of 12.7% in the “Big Four” compared to last week when there was an increase of 32.9%. This sea change underscores the topsy-turvy nature of the sector, especially given ongoing geopolitical issues.

Recap

8 of the 22 stocks in the portfolio increased. There was a decrease of 9.0% in the relative strength index compared to the prior week when there was a decrease of 7.3%. Let us see how this volatile sector has performed at the same time next week shall we?