E The Canadian Cannabis Report - Monday Mar. 22

For the trading week ended March 19, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 0.07% compared to the prior week when it decreased by 6.7%.

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. Now let us look at this week’s good, bad, and ugly stocks.

The Good

There was 1 stock that increased by more than 10%, which is my metric for inclusion in this category: FLWPF + 11.7%

The Bad

There was 1 stock that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: OGI -10.1%. I opined on OrganiGram Holdings Inc. in last week’s report, and my private clients have positioned their trading accordingly.

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 5.1% in the “Big Four” compared to last week when there was an increase of 10.5%. So the roller coaster is ongoing.

Recap

There was an increase of 10.4% in the relative strength index compared to last week when there was a decrease of 1.4%, which in my view is due to the relatively more positive performance of the higher capitalization MCCCI stocks. Let us see how this volatile sector has performed at the same time next week shall we?

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