For the trading week ended March 4, 2022, there was a decrease of 10.3% in my proprietary Canadian Cannabis Company Index (MCCCI) compared to the prior week when there was a decrease of 4.1%. 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.

Image by Herbal Hemp from Pixabay

The 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.

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 4 stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: TLRY -13.6%, CGC -11.7%, ACB -11.4%, and EMHTF -10.7%.

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 15.1% in the “Big Four” compared to the prior week when there was a decrease of 5.1%. For the 2nd consecutive week, all of the “Big Four” (3 of which are on the “bad” list) decreased and the 4th (CRON) decreased by 9.9%.

Recap

Only 2 of the 22 stocks in the portfolio increased. There was an increase of 2.5% in the relative strength index compared to the prior week when there was an increase of 1.7%. Let us see how this volatile sector has performed at the same time next week shall we?