For the trading week ended July 29, my proprietary Canadian Cannabis Company Index (MCCCI) increased by 3.4 % compared to the prior week when it increased by 8.5%. 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?

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: NXTTF +33.3% and MEDIF +20.0%. Both Namaste Technologies Inc. and MediPharm Labs Corp. (a “good” repeater from last week) are low capitalization stocks subject to pronounced periodic price fluctuations.

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: NEPT -11.6% and ROMJF -10.8%. On 7/29/22 Neptune Wellness Solutions Inc. announced a voluntary delisting from the Toronto Stock Exchange. Rubicon Organics Inc. has experienced a challenging 2022 which I see continuing going forward.

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 6.7% in the “Big Four” (all of which increased modestly) compared to the prior week when there was an increase of 9.6%.

Recap

12 of the 22 stocks in the MCCCI increased. There was a decrease of 9.3% in the relative strength index compared to the prior week when there was an increase of 9.4 %. I continue to believe that a sustained bull market is likely absent a significant event such as favorable legislation for the sector. 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, July 25
The Canadian Cannabis Report - Monday, July 18
The Canadian Cannabis Report - Monday, July 11