E The Canadian Cannabis Report - Monday, Dec. 14

Editors' note: This article discusses one or more penny stocks and/or microcaps. Such stocks are easily manipulated; do your own careful due diligence. 


For the trading week ended December 11, my (proprietary) Canadian Cannabis Company Index (MCCCI) decreased by 7.3% compared to the prior week when it increased by 2.6%. The index consists of 25 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. With 2 trading weeks left in 2020, it appears my thesis of a significant downturn in the sector is likely to be sustained.

My mid-year report (published here on TalkMarkets) showed that the MCCCI had decreased by 36% YTD, which I stated may be a guidepost for the rest of 2020. I fully expect the year-end report to mimic the earlier metric. Now let us look at this week’s good, bad and ugly stocks.

Image source

The Good

There were no stocks that increased by more than 10%, which is my metric for inclusion in this category.

The Bad

There was 1 stock that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: CBWTF -15.3%. Auxly Cannabis Group Inc. has now been profiled 6 consecutive weeks here and given the 1/64th probability of being 1005 right on this chameleon of stock, I would suggest anyone who’s been successful should consider taking Jim Cramer’s advice and buy themselves a new cashmere sweater for Christmas.

The Ugly

There were 2 stocks that decreased by 20% or more, which is my metric for inclusion in this category: WDDMF -30.5% and FLWPF -26.9%. WeedMD Inc. and Flowr Corporation have had horrific price plunges of 70+% in 2020 and I consider them prime candidates for the tax selling season.

1 2
View single page >> |
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.