For the trading week that ended July 21, 2023, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 2.8% compared to the prior week when it decreased by 1.9%. 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 were no stocks that increased by more than 10%, which is my metric for inclusion in this category.
 

The Bad

There were 2 stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: TSNDF -13.7% and OGI -11.3%. TerrAscend Corp. recently began trading on the TSX which is essentially a non-event given that it is a fundamentally flawed company.
 

The Ugly

There was 1 stock that decreased by 20% or more, which is my metric for inclusion in this category: ALEAF -23.9%. Aleafia Health Inc. has serious liquidity constraints which will hamstring the company for the foreseeable future.
 

Valuation Metric Review

There was no change in the “Big Four” (3 of which decreased) compared to the prior week when it decreased 2.6%. I am still bearish on Canopy Growth Corporation (CGC) which had a marginally positive week as a Chapter 11 filing is a possibility.
 

Recap

There was no change in relative strength index for the 2nd consecutive week. (NOTE: This metric was originally incorrectly reported in the prior week.) Let us see how this volatile sector has performed at the same time next week, shall we?

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The Canadian Cannabis Report - Monday July 10
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