Image Source: Pixabay
 

For the (shortened) trading week that ended January 19, 2024, my proprietary Canadian Cannabis Company Index (MCCCI) increased by 2.8% compared to the prior week when it decreased by 7.4%. The index consists of 14 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: 
 

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 a de minimus 0.05% increase in the “Big Four” (2 of which decreased) compared to the prior week when there was a 8.0% decrease.
 

Recap

There was a 2.3% decrease in the relative strength index compared to the prior week when there was a 4.9% increase. 3 of the 14 MCCCI stocks increased, Given that this was an “all quiet on the Western front” -like week, my sense is this may endure, at least for the foreseeable future. That is unless the bulls’ clarion call of favorable cannabis legislation actually happens. One item of note- I am adding OrganiGram Holdings Inc. (OGI) to my “stock to watch” list., primarily based on Friday’s trading, when the stock soared 10.7% on strong volume. OGI was a “good stock” in the prior week and is the favorite cannabis stock of Alan Brochstein, a leading industry spokesman, as I have previously pointed out. This may account for an increase in interest in OGI.

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, Jan. 15
The Canadian Cannabis Report- Monday, Jan. 8
The Canadian Cannabis Report- Monday, Jan. 1