S The Canadian Cannabis Report - Monday, June 14

TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.


For the trading week ended June 4, my proprietary Canadian Cannabis Company Index (MCCCI) increased by 7.9% compared to the prior week when it decreased by 4.1%. The index consists of 24 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. MCCCIs 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.

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 no stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category.

The Ugly

There was 1 stock that decreased by 20% or more, which is my metric for inclusion in this category: CBWTF -27.4%. On 6/9/21 Auxly Cannabis Group Inc. announced a $15M capital raise. This will further dilute shareholders, and in my view, this company has an uncertain future.

Recap

There was a 5.9% increase in the “Big Four” as all of them increased. There was a 15% increase in the relative strength index compared to the prior week when there was no change. It is important to point out that the MCCCI was rebalanced due to the recent delisting of ZBISF stock which merged with HEXO and the APHA/TLRY merger, which caused a “1 off” statistical aberration to the metrics related to how the MCCCI is calculated. Let us see how this volatile sector has performed at the same time next week, shall we?

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