For the trading week ended August 19, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 3.6% compared to the prior week when it increased by 4.6%. 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? Shape A close up of a green plant Description automatically generated with low confidence.

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: FLWPF +50% and CGC +11.4%. Flowr Corporation is a 4th quartile stock with an erratic trading pattern. Canopy Growth Corporation is a repeater on the “good” stock list and has rallied amid renewed hope for cannabis legislation. Based on fundamentals, I believe this company is due for a breather.

The Bad

There were 4 stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: TRSSF -17.8%, CBWTF -16.7%, ACB -15.5%, and OGI -12.7%. TerrAscend Corp. is a repeater on the “bad” list and may be subject to increased price pressure going forward.

The Ugly

There were 2 stocks that decreased by 20% or more, which is my metric for inclusion in this category: MEDIF -28.6% and VVCIF -25.0%. MediPharm Labs Corp. was “good” stock in the prior week which is indicative of the volatility in many low capitalization stocks in the sector. Valuation Metric Review There was a decrease of 1.2% in the “Big Four” (3 of which decreased) compared to the prior week when there was an increase of 6.5%. The importance of these constituents on the MCCCI is on the rise.

Recap

7 of the 22 stocks in the MCCCI increased, which is a reversal of the recent bullish trend. There was a decrease of 4.5% in the relative strength index compared to the prior week when there was a decrease of 8.4%. 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, Aug. 15
The Canadian Cannabis Report - Monday August 8
The Canadian Cannabis Report - Monday, Aug. 1