For the trading week ended February 18, 2022, there was a decrease of 16.0% in my proprietary Canadian Cannabis Company Index (MCCCI) compared to the prior week when there was an increase of 20.7%. 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 was 1 stock that increased by more than 10% which is my metric for inclusion in this category: CBWTF +19.3 %. Auxly Cannabis Group Inc. did not report any news to help us understand the price spike.

The Bad

There were 8 stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category:  HEXO -16.8%, CGC -16.5%, CRON -12.2%, ALEAF -12.1%,  RDDTF -11.2%, OGI -11.0%, TLRY -10.8% and ROMJF -10.7%. HEXOs 2 weeks run as a “good” stock came to an abrupt end, and I frankly do not see much of a future for this downtrodden stock.

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 12.7% in the “Big Four” compared to the prior week when there was an increase of 16.6%. All of the “Big Four” decreased, and CGC, CRON, and TLRY were “bad” stocks that negatively affected the MCCCI.

Recap

Only 2 of the 22 stocks in the portfolio increased. There was a decrease of 24.0% in the relative strength index compared to the prior week when there was an increase of 27.3%. A topsy-turvy week (and then some) to be sure in all of the MCCCI metrics. Let us see how this volatile sector has performed at the same time next week shall we?