The Canadian Cannabis Report- Monday, July 10 For the trading week that ended July 7, 2023, my proprietary Canadian Cannabis Company Index (MCCCI) increased by 3.9% compared to the prior week when it increased by 8.4%. The index consists of 15 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: ALEAF +12.9%, CGC + 12.0%, and NEPT +12.0%. Aleafia Health Inc. is being acquired by Red White & Bloom Brands Inc. (RWBYF) which may be why there was upward price movement in the stock. I will present my views regarding this business combination when it has been completed.
 

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 4.6% in the “Big Four” (all of which increased) compared to the prior week when there was an increase of 1.3%. 9 of the 15 MCCCI portfolio stocks increased, which is a recent high.
 

Recap

The relative strength index increased by 12.5% compared to the prior week when it decreased by 8.2%. Let us see how this volatile sector has performed at the same time next week, shall we?

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