For the trading week that ended June 9, 2023, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 5.8% compared to the prior week when it decreased by 2.0%. The index consists of 16 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: DLTNF +18.6%. Delta 9 Cannabis Inc. is a thinly-traded $6.5M market capitalization stock that has little effect on the MCCCI.

The Bad

There were 3 stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category:

HEXO -18.3%, CGC -17.4%, and ALEAF -13.3%. HEXO Corp. has been an "avoid at all costs" stock for several years.

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 8.9% in the “Big Four” (3 of which decreased for the 2nd consecutive week) compared to the prior week when there was a decrease of 1.9%. 4 of the MCCCI stocks increased, as the lackluster performance of the sector continues unabated.

Recap

There was a decrease of 7.3% in the relative strength index compared to the prior week when there was an increase of 11.1%. 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, June 5
The Canadian Cannabis Report - Monday, May 29
The Canadian Cannabis Report - Monday, May 22