E The Canadian Cannabis Report - Monday, Feb. 8

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 5, my proprietary Canadian Cannabis Company Index (MCCCI) increased by 14.9% compared to the prior week when it increased by 7.1%. 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 18 stocks that increased by more than 10%, which is my metric for inclusion in this category: WDDMF +77.0%, SPRWF +69.6%, NCNNF +48.6%, APHA +36.9%, RDDTF +30.4%, VVCIF +29.4%, OGI +27.9%, EMHTF +26.5%, ALEAF +25.4%, NEPT +24.7%, HEXO +22.8%, TGODF +21.6%, MEDIF +21.4%, NXTTF +18.8%, CBWTF +18.6%, TRSSF +17.4%, CRON +16.0%, and ACB +14.8%.

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 an increase of 13.9% in the “Big Four” compared to last week when there was an increase of 10.2%. Canopy Growth Corporation, which is by far the largest capitalization in the MCCCI, was the sole member of this group that did not participate in this week’s rally. A downgrade to neutral at Piper Sandler on 2/5/21 concerns among some investors, at least on a short-term basis.

Recap

There was an increase of 12.5% in the relative strength index compared to last week when there was a decrease of 12.3%. This ~180-degree turnaround underscores what a wacky week it was in the weed world. (trying saying that phrase fast 3 times) Let us see how this volatile sector has performed at the same time next week shall we? Author’s Note: I will introduce a summation of a new metric which is being developed at the behest of my investors in next week’s report.

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.