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For the trading week that ended February 9, 2024, my proprietary Canadian Cannabis Company Index (MCCCI) was unchanged compared to the prior week when it increased by 3.2%. The index consists of fourteen 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?
 

The Good

There was one stock that increased by more than 10%, which is my metric for inclusion in this category: OGI +30.3%. Organigram Holdings, Inc. is a repeater from the prior week’s “good” list.
 

The Bad

There was one stock that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: CGC -12.6%. Canopy Growth Corporation recently announced their intent to accelerate their entrance into the U.S. market which may foreshadow increased interest in the company. However, their highly leveraged balance sheet is a continuing issue of concern.
 

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 no change in the “Big Four” (2 of which increased) compared to the prior week when there was a 3.1% increase. As noted above, CGC was the worst performer of the 14 MCCCI. In my view, the company’s decline in cash reported on 2/9/24 was a major contributing factor.
 

Recap

There was a 2.5% increase in the relative strength index compared to the prior week when there was a 5.3% increase. Six of the fourteen MCCCI stocks increased for the second consecutive week. 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, Feb. 5
The Canadian Cannabis Report - Monday, Jan. 29
The Canadian Cannabis Report - Monday, Jan. 22