For the trading week ended June 7, 2024, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 6.1% compared to the prior week when it decreased by 3.6%. 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?

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The Good

There were no stocks that increased by more than 10%, which is my metric for inclusion in this category quality benefits from the new tables installed at the Delta facility is a key element of margin improvement.

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: CBWTF -18.4% and CGC -16.8%. Auxly Cannabis Group Inc. is a 3rd quartile stock with a market capitalization of ~ $32M and trades at $0.02. CBWTF has the dubious distinction as being a “bad” stock for 3 consecutive weeks.

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 5.9% decrease in the “Big 4” (all of which decreased) compared to the prior week when there was a 3.3% decrease. Canopy Growth Corporation (CGC) which I recently identified as an “optionable stock to watch” was the “biggest loser” in the cohort for the 2nd consecutive week, and decreased 16.8% to the benefit of my private clients

Recap

There was a 11.4% decrease in the relative strength index compared to the prior week when there was a 6.2% decrease. None of the 14 MCCCI stocks increased. Neptune Wellness Solutions Inc. (NEPT), Radient Technologies Inc. (RDDTF), and Delta 9 Cannabis Inc. (DLTNF) may be closer to an existential event. Let us see how this volatile sector has performed at the same time next week, shall we?

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