For the trading week that ended December 2, my proprietary Canadian Cannabis Company Index (MCCCI) increased by 15.3% compared to the prior week when it decreased by 4.3%. The index consists of 21 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 6 stocks that increased by more than 10%, which is my metric for inclusion in this category: OGI +18.4%, TRSSF +18.3%, VVCIF (a repeater from the prior week’s “good” list) +18.1%, TLRY +18.0%, CGC +17.5%, and ALEAF +14.3%. In my view, the price spike in these stocks was largely in response to the 12/2/22 signing of the marijuana research bill by President Biden.
 

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 was 1 stock that decreased by 20% or more, which is my metric for inclusion in this category: NEPT -22.2%. There is rampant speculation that Neptune Wellness Solutions Inc. (which has received a non-compliance letter from Nasdaq) will report negative financial results in the foreseeable future.
 

Valuation Metric Review

There was an increase of 16.3% in the “Big Four” (all of which increased) compared to the prior week when there was a decrease of 1.1%.
 

Recap

11 of the 21 stocks in the MCCCI increased. There was a decrease of 3.6% in the relative strength index compared to the prior week when there was an increase of 3.7%. Let us see how this volatile sector has performed at the same time next week, shall we?

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The Canadian Cannabis Report - Monday, Nov.28
The Canadian Cannabis Report - Monday, Nov. 21
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