The Canadian Cannabis Report - Monday, Aug. 15

For the trading week ended August 11, my proprietary Canadian Cannabis Company Index (MCCCI) increased by 4.6% compared to the prior week when it increased by 7.6%. The index consists of 22 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?

A close up of a green plant Description automatically generated with low confidence

Image by Herbal Hemp from Pixabay
 

The Good

There were 6 stocks that increased by more than 10%, which is my metric for inclusion in this category: VLNS +23.3%, TGODF +16.7%, MEDIF +14.3% CGC +13.8%, ACB +12.9% and NEPT +10.4%. Neptune Wellness Solutions Inc. is a repeater on the “good” stock list.
 

The Bad

There were 2 stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: ROMJF -14.5% and TRSSF -12.4%.
 

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 an increase of 6.5% in the “Big Four” (3 of which increased) compared to the prior week when there was an increase of 9.2%. Based on the recent performance of this very important metric, there is growing evidence that the sector as a whole may be approaching equilibrium.
 

Recap

17 of the 22 stocks in the MCCCI increased, continuing the bullish trend. There was a decrease of 8.4% in the relative strength index compared to the prior week when there was an increase of 28.0%. (NOTE: due to a typo, 28.8% was incorrectly stated in the 8/8/22 CCR.) Let us see how this volatile sector has performed at the same time next week, shall we?


More By This Author:

The Canadian Cannabis Report - Monday August 8
The Canadian Cannabis Report - Monday, Aug. 1
The Canadian Cannabis Report - Monday, July 25

Disclaimer: The information provided in this article is for general informational purposes only. 

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