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.

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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.

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