For the trading week that ended December 22, 2023, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 9.8% compared to the prior week when it increased by 4.2%. 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?

Image Source: Pixabay
 

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:  DLTNF -18.7%. Delta 9 Cannabis Inc. is a 4th-tier MCCCI stock that did not release any news.
 

The Ugly

There was 1 stock that decreased by 20% or more, which is my metric for inclusion in this category: NEPT -43.8%. Neptune Wellness Solutions Inc. faces delistment by Nasdaq which would be detrimental to an already challenged stock.
 

Valuation Metric Review

There was a 4.2% decrease in the “Big Four” compared to the prior week when there was a 3.6% increase. 
 

Recap

There was a 5.3% decrease in the relative strength index compared to the prior week when there was a 7.3% decrease.  4 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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