For the trading week that ended February 3, 2023, my proprietary Canadian Cannabis Company Index (MCCCI) increased by 4.9% compared to the prior week when it increased by 0.03%. The index consists of 20 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 3 stocks that increased by more than 10%, which is my metric for inclusion in this category: NEPT +36.1%, TRSSF + 10.8%, and HEXO +10.1%. Despite the recent interest in Neptune Wellness Solutions Inc. I believe the stock is overbought at this level.

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: ROMJF -13.3%. Rubicon Organics Inc. is a repeater from the prior week “bad” list. I do not see a catalyst on the horizon that might reverse this trend.

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 an increase of 3.7% in the “Big Four” (all of which increased) compared to the prior week when there was an increase of 3.1%. Recap 11 of the 20 stocks in the MCCCI increased. There was an increase of 18.6% in the relative strength index compared to the prior week when there was a decrease of 39.2%. The erratic nature of this index is ongoing, and I am not yet sure why this is the case. Let us see how this volatile sector has performed at the same time next week, shall we?

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