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For the trading week ended August 23, 2024, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 5.4% compared to the prior week when it increased by 12.8%. 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 no stocks that increased by more than 10%, which is my metric for inclusion in this category.

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: TSNDF -15.3%, CRON -10.8%, and CGC -10.7%. TerrAscend Corp. was a “good stock” in the prior week. On 8/22/24 the company authorized a $10M share buyback program. Based on the volatility of TSNDF, I have no clue how the stock may trade 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 a 5.7% decrease in the “Big 4” (all of which decreased) compared to the prior week when there was s 12.5% increase. The stock-price based metric decreased by 9.1% compared to the prior week when it increased by 23.1%.

Recap
There was a 1.6% increase in the relative strength index compared to the prior week when there was a 6.9 % increase. 2 of the 14 MCCCI stocks increased. 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. 19
The Canadian Cannabis Report- Monday, Aug 12
The Canadian Cannabis Report - Monday, Aug. 5