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) decreased by 4.1% compared to the prior week when it increased by 14.0%. The index consists of 25 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 3 stocks that increased by more than 10%, which is my metric for inclusion in this category: FLWPF +16.3%, TLRY +12.8%, and WDDMF +10.2%. On 5/28/21 The Flwr Corporation announced 2021 Q1 earnings which showed improved financials. I have shared my updated view regarding the merger with Terrace Global with my private clients. On 6/2/21 Cantor Fitzgerald issued a buy rating on TLRY, based on its recent merger with Aphria Inc. I have placed TLRY on my “watch list” for reason that I have shared with my private clients. On 5/31/21 WeedMD Inc. reported a significant increase in revenue for the year ended 12/31/20. The company has a market capitalization of ~ $67M and a frothy trading pattern that may be of interest to short-term traders based on its 1.5 beta.

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: MEDIF -12.7% and TGODF -10.5%. MediPharm Labs Corp. and The Green Organic Dutchman Holdings Ltd. were both on the “good” stock list the prior week and are 2 (of the 3) of the MCCCIs most “frequent flyers”.

The Ugly

There were no stocks that decreased by 20% or more, which is my metric for inclusion in this category.

Recap

There was a 5.0% decrease in the “Big Four” as 3 of them decreased compared to the prior week when there was a 16.1% increase, and they all increased by more than 10%. There was no change in the relative strength index compared to the prior week when there was an increase of 2.5%. Let us see how this volatile sector has performed at the same time next week, shall we?