The Canadian Cannabis Report - Monday, Jan. 30 For the trading week that ended January 27, my proprietary Canadian Cannabis Company Index (MCCCI) increased by a de minimis 0.03% % compared to the prior week when it increased by 1.8%. 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 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: ROMJF. Rubicon Organics Inc. recently awarded a stock option to key employees; perhaps the market reacted negatively for that reason.
 

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 3.1% in the “Big Four” (all of which decreased marginally) compared to the prior week when there was a decrease of 2.4%. Canopy Growth Corporation was the best performer of the group, which for the most part seems to trade in sync.
 

Recap

6 of the 20 stocks in the MCCCI increased. There was a decrease of 39.2% in the relative strength index compared to the prior week when there was an increase of 3.2%. The recent erratic nature of this index is likely transitory. I will explain why after I do a “deep dive” into this situation. 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. 23
The Canadian Cannabis Report - Monday, Jan. 16
The Canadian Cannabis Report - Monday, Jan. 9