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For the trading week ended August 9, 2024, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 1.4% compared to the prior week when it decreased by 2.3%. 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: CBWTF +15.6% and MEDIF +11.1%. Auxly Cannabis Group Inc. stock price has increased 215.6% YTD and shows no sign of weakness for the foreseeable future.

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 2.6% decrease in the “Big 4” (3 of which decreased) compared to the prior week when there was s 2.4% decrease. The stock-based metric introduced in the prior week’s report based on “Big 4” which makes up 80% of the market capitalization of the MCCCI decreased by 11.7% compared to the prior week when it decreased by 8.2%. Based on this abysmal performance, I believe a DEFCON 2 rating is appropriate.

Recap

There was a 13.7% increase in the relative strength index compared to the prior week when there was 3.8 % decrease. 4 of the 14 MCCCI stocks increased, another bearish indicator. Let us see how this volatile sector has performed at the same time next week, shall we?

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The Canadian Cannabis Report - Monday, Aug. 5
The Canadian Cannabis Report - Monday, July 29
The Canadian Cannabis Report - Monday, July 22