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For the trading week that ended February 23, 2024, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 3.8% compared to the prior week when it was unchanged. 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 were no stocks that increased by more than 10%, which is my metric for inclusion in this category. TerrAscend Corp., a “Big 4” member was the best performer of the MCCCI, and increased by 8.5%. Since 2/20/24 TSND has been trending upwards, and I have alerted my private clients who trade options that I am monitoring daily trading closely.
 

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: NEPT -15.2%. Neptune Wellness Solutions Inc. has a market capitalization of $1.4M and faces an uncertain future.
 

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 3.8% decrease in the “Big 4” (3 of which increased) compared to the prior week when there was a 1.7% increase. Canopy Growth Corporation (CGC), a favorite option play of my private clients, was the “Biggest Loser” and decreased by 8.5%. As I said in the prior week’s report, I am on the sidelines of this bull/bear tug of war but it is a very interesting situation to be sure.
 

Recap

There was a 5.0% decrease in the relative strength index compared to the prior week when there was a 2.4% decrease.” I hope to disclose my current thesis for the Canadian cannabis sector next week. Spoiler alert- expect caveat emptor. Let us see how this volatile sector has performed at the same time next week, shall we?

More By This Author:

The Canadian Cannabis Report - Monday, Feb. 19
The Canadian Cannabis Report - Monday, Feb. 12
The Canadian Cannabis Report - Monday, Feb. 5