For the trading week that ended February 24, 2023, my proprietary Canadian Cannabis Company Index (MCCCI) increased by 1.1% compared to the prior week when it increased by 7.5%. The index consists of 19 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 no stocks that increased by more than 10%, which is my metric for inclusion in this category:

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 -14.8%. Neptune Wellness Solutions Inc. is frequently listed on either as a “good” or “bad” stock, mainly since it is a thinly-traded and has a low market capitalization.

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 3.5% in the “Big Four” (all of which decreased) compared to the prior week when there was an increase of 6.3%. There is now 1 less member of the MCCCI as I will explain in next week’s report.

Recap

None of the 19 stocks in the MCCCI increased. There was a 20.8% decrease (a troubling metric) in the relative strength index compared to the prior week when there was no change. 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. 20
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