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For the trading week that ended Aril 5, 2024, my proprietary Canadian Cannabis Company Index (MCCCI) increased 9.2%. The index consists of 14 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?

The Good

There were 2 stocks that increased by more than 10%, which is my metric for inclusion in this category: ACB +30.2% and CGC +11.7%. In my view, the recent surge in Aurora Cannabis Inc. stock is largely attributable to the bull thesis that there will be favorable legislation forthcoming regarding the cannabis sector. I will opine my thoughts on the raging bull/bear tug of war in next week’s report.

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 7.1% increase in the “Big 4” (all of which increased). As noted above, Canopy Growth Corporation was the biggest gainer of this critical cohort.

Recap

There was a 16.4% increase in the relative strength index. The continuing sea change in all 3 metrics is historic for the MCCCI but I am not convinced that it is sustainable. I will soon elaborate on my reasons for my viewpoint after I am able to drill down on Q1 results. Let us see how this volatile sector has performed at the same time next week, shall we?

Author’s Note: There was no report for the week ended 3/29/24 and hence comparative metrics are not presented for the week ended 4/5/24.

More By This Author:

The Canadian Cannabis Report - Monday, March 25
The Canadian Cannabis Report - Monday, March 18
The Canadian Cannabis Report - Monday, March 11