The Canadian Cannabis Report - Monday, June 6

For the trading week ended June 3, my proprietary Canadian Cannabis Company Index (MCCCI) increased by 8.0% compared to the prior week when it decreased by 12.8%. The index consists of 22 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?

A close up of a green plant Description automatically generated with low confidence

Image by Herbal Hemp from Pixabay

The Good

There were no stocks that increased by more than 10% (but less than 20%) 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 2 stocks that decreased by 20% or more, which is my metric for inclusion in this category: RDDTF -33.3% and FLWPF.
 

Valuation Metric Review

There was a decrease of 3.7% in the “Big Four” (all of which decreased) compared to last week when there was a decrease of 14.7%.
 

Recap

4 of the 22 stocks in the portfolio increased, as the poor performance of the "Big Four” continues to hamstring the MCCCI. There was a decrease of 1.4% in the relative strength index compared to the prior week when there was an increase of 2.9%. Let us see how this volatile sector has performed at the same time next week, shall we?

Disclaimer: The information provided in this article is for general informational purposes only. 

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Comments

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Barry Hochhauser 1 year ago Member's comment

Would you or anyone happen to know what happened with the CNBS options. It went down drastically.

Trinity Sinclair 1 year ago Member's comment

What about $TLRY?