For the trading week ended June 14, 2024, my proprietary Canadian Cannabis Company Index (MCCCI) was unchanged compared to the prior week when it decreased by 6.1%. 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.

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 no change in the “Big 4” (2 of which decreased) compared to the prior week when there was a 5.9% decrease. Canopy Growth Corporation (CGC) which I have previously labelled as an “optionable stock to watch” was the “biggest gainer,” and increased 5.9%, which reversed a 2-week trend as the “biggest loser.” TerrAscend Corp. (TSNDF) was the “biggest loser” in the cohort and decreased 7.6%. Both of these stocks are “Big 4” stocks, which means their performances have a pronounced effect on the MCCCI.

Recap

There was no change in the relative strength index compared to the prior week when there was an 11.4% decrease. 4 of the 14 MCCCI stocks increased but marginally. That all 3 aforementioned metrics (MCCCI, “Big 4,” and relative strength index) were unchanged, coupled with no “good,” “bad,” or “ugly,” stocks is a first for the TCCR, which I have published weekly since 4/5/20. I believe this underscores how moribund the sector is, and likely will continue to be unless or until there is some definitive resolution of cannabis classification. That being said, let us see how this volatile sector has performed at the same time next week, shall we?

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