For the trading week that ended June 30, 2023, my proprietary Canadian Cannabis Company Index (MCCCI) increased 8.4% compared to the prior week when there was no change. 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 was1 stock that increased by more than 10%, which is my metric for inclusion in this category TRSSF +10.6%. On 6/30/23 TerrAscend Corp. announced the acquisition of Herbiculture which may spur additional interest in the stock.

The Bad

There were 1 stock that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: NEPT -12.4%. Neptune Wellness Solutions Inc. is the lowest market capitalization stock in the MCCCI with an uncertain future.

The Ugly

There was 1 stock that decreased by 20% or more, which is my metric for inclusion in this category: CGC -27.2%. Canopy Growth Corporation, which is a “Big Four” stock was a “bad” stock last week and I commented then I am super-bearish on the stock, which has decreased 74.5% YTD. There may be a “dead cat bounce” possibility at $0.39 but not with my money as “penny stocks” are inherently volatile.

Valuation Metric Review

There was an increase of 1.3% in the “Big Four” (3 of which decreased) compared to the prior week when there was a decrease of 0.91%. 7 of the 15 MCCCI portfolio stocks increased, although many were only marginally higher.

Recap

The relative strength index decreased 8.2% compared to the prior week when there was no change. HEXO Corp. (HEXO) has ceased trading as Tilray Brands, Inc. (TLRY) has completed acquisition of the company. I have previously expressed my reservations regarding this transaction, which makes the combined company the biggest cannabis sector stock by trevenue. 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, June 26
The Canadian Cannabis Report- Monday, June 19
The Canadian Cannabis Report - Monday, June 12