The Canadian Cannabis Report- Monday, Aug. 14 For the trading week that ended August 11, 2023, my proprietary Canadian Cannabis Company Index (MCCCI) increased 7.1% compared to the prior week when it was unchanged. The index consists of 15 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 were 2 stocks that increased by more than 10%, which is my metric for inclusion in this category: TSND +18.2% and TLRY +11.9%. On 8/10/23 TerrAscend Corp. reported 2023 Q2 record net revenue of $72.1M, an increase of 12.7% Y/O/ and 3.9% sequentially, representing its 7th consecutive quarter of sequential revenue growth. I am preparing a report for my private clients who are active in the option space regarding my view on this company going forward.
 

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 5.2% increase in the “Big Four” (2 of which increased) compared to the prior week when it was unchanged. I remain neutral on the group for the remainder of 2023.
 

Recap

There was a 4.8% decrease in the relative strength index compared to the prior week when it was unchanged. 2 of the 15 MCCCI stocks increased as referenced above. In my view, this is compelling evidence of how skewed the metrics are concentrated in these 2 stocks. I intend to closely monitor TLRY as the stock has risen 48.4% in the last 4 weeks. Let us see how this volatile sector has performed at the same time next week, shall we?

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