For the trading week ended August 26, my proprietary Canadian Cannabis Company Index (MCCCI) increased by 2.5% compared to the prior week when it decreased by 3.6%. 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?

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: NEPT +42.5% and MEDIF +20.0%. Neptune Wellness Solutions Inc.is a mid-tier MCCCI stock with a quixotic trading pattern associated with its low average daily volume. MediPharm Labs Corp. is the consummate dice roll that has been a “good” or “bad” stock for 3 consecutive weeks. Those who trade this stock need the stomach of a billy goat as well as an adequate supply of Maalox at the ready if they can even find it that is.

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 2 stocks that decreased by 20% or more, which is my metric for inclusion in this category: RDDTF -50.0% and  CBWTF -20.0%. Radient Technologies Inc. is a $6.2M market capitalization stock that trades for $0.01. Enough said. Auxly Cannabis Group Inc. was a “bad” stock in the prior week and has been on a downtrend since Q1. Enough said again.

Valuation Metric Review

There was an increase of 2.5% in the “Big Four” (all of which increased marginally) compared to the prior week when there was a decrease of 1.2%.

Recap

11 of the 22 stocks in the MCCCI increased. There was a decrease of 8.3% in the relative strength index compared to the prior week when there was a decrease of 4.5%. Let us see how this volatile sector performs at the same time next week, shall we?

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