For the trading week ended December 17, there was a decrease of 2.5% in my proprietary Canadian Cannabis Company Index (MCCCI) compared to the prior week when there was a decrease of 1%. 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.

Image by Herbal Hemp from Pixabay

The 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.

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 7 stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: MEDIF -14.0%, NXTTF -14.0%, NEPT -12.9%, VLNS -12.5%, ROMJF -12.4%, EMHTF -12.0% and HEXO -11.8%.

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 decrease of 2.9% in the “Big Four” compared to the prior week when there also was a decrease of 2.9%. The performance of this group for the remainder of 2021 will have a significant effect on the MCCCI, as many of the lower capitalization stocks in the index continue to be under pressure.

Recap

There was a decrease of 2.3% in the relative strength index compared to the prior week when there was a decrease of 2.9%. It appears that there will not be a material change in this metric for the remainder of 2021 unless there is some sort of "Black Swan" event. Let us see how this volatile sector has performed at the same time next week shall we?