Image by Herbal Hemp from Pixabay

For the trading week that ended Dec. 30, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 1.7% compared to the prior week when it decreased by 13.4%.

The index consists of 21 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 decrease of 1.6% in the “Big Four” (3 of which decreased for the 4th consecutive week) compared to the prior week when there was a decrease of 6.3%. Aurora Cannabis Inc. (ACB) was the outlier of the group, and gained 2.5%.

Recap

Only 4 of the 21 stocks in the MCCCI increased, which is an indicator of the prolonged froth in the sector. There was an increase of 3.2% in the relative strength index compared to the prior week when there was an increase of 14.8%. 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, Dec. 26
The Canadian Cannabis Report - Monday, Dec. 19
The Canadian Cannabis Report - Monday, Dec. 12