E The Canadian Cannabis Report - Monday, Feb 15

TM Editors Note: This article discusses one or more penny stocks and/or microcaps. Such stocks are readily manipulated; do your own careful due diligence.


For the trading week ended February 12, my proprietary Canadian Cannabis Company Index (MCCCI) increased by 3.4% compared to the prior week when it increased by 14.9%. 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. MCCCIs 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 14 stocks that increased by more than 10%, which is my metric for inclusion in this category: OGI +50.3%, NXTTF +48.4%, EMHTF +39.2%, WDDMF +32.5%, SPRWF +30.0%, FLWPF +28.4%, BHHKF +28.2%, ZBISF +27.7%, NEPT +26.1%, ROMJF +21.5%, NCNNF +20.9%, RDDTF +19.2%, VVCIF +17.3% and VRNDF +15.0%.

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 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 2.8% in the “Big Four” compared to last week when there was an increase of 13.9%. Canopy Growth Corporation, which is by far the largest capitalization in the MCCCI, has decreased 2 weeks in a row now and has curbed my enthusiasm for the sector as a whole.

Recap

There was an increase of 4.2% in the relative strength index compared to last week when there was an increase of 12.5%. Let us see how this volatile sector has performed at the same time next week shall we? Author’s Note: My new metric is not quite ready for prime time.

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