The Canadian Cannabis Report- Monday, July 17 For the trading week that ended July 14, 2023, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 1.9% compared to the prior week when it increased by 3.9%. 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 was 1 stock that increased by more than 10%, which is my metric for inclusion in this category: CBWTF +12.9%. Auxly Cannabis Group Inc. has a market capitalization of $15.3M and trades at $0.01. The company is in the midst of a turnaround plan which I believe will determine its fate.
 

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: CGC -15.8%. On 7/14/23 Canopy Growth Corporation received a non-compliance notice from NASDAQ. Although this is essentially a procedural issue, it underscores just how suboptimal things are for this MCCCI constituent. The stock now trades at $0.38, which is 99%+ less than its all-time high of $58.69.

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 2.6% in the “Big Four” (3 of which decreased) compared to the prior week when there was an increase of 4.6%. Canopy Growth Corporation 4 of the 15 MCCCI portfolio stocks increased.
 

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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