Image Source: Pixabay

The Canadian Cannabis Report - Monday July 29 For the trading week ended July 26, 2024, my proprietary Canadian Cannabis Company Index (MCCCI) increased by 3.4% compared to the prior week when there was no change. The index consists of 14 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 4 stocks that increased by more than 10%, which is my metric for inclusion in this category: NEPTF + 23.3%, CBWTF +18.5%, ALEAF +16.7%, and TSNDF +12.9%. Neptune Wellness Solutions Inc. has a miniscule market capitalization of 78K. In my view this company is a “dead stock walking.”

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 3.6% increase in the “Big 4” (all of which increased) compared to the prior week when there was no change. Next week I intend to introduce a new metric based on the fact that the “Big 4” which makes up 80% of the market capitalization of the MCCCI.

Recap
There was a 10.4% in the relative strength index compared to the prior week when there was no change. 9 of the 14 MCCCI stocks increased. 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, July 22
The Canadian Cannabis Report - 2024 YTD Review
The Canadian Cannabis Report - Monday June 17