For the trading week that ended March 7, 2025, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 4.3%. 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?

Image Source: Pixabay
 

The Good

There was 1 stock that increased by more than 10%, which is my metric for inclusion in this category: ROMJF +12.5% Rubicon Organics Inc. recently obtained a key certification for international shipments. This stock was also a “good” stock in the prior week.
 

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: CGC -10.7%. On 2/28/25 after the market closed for the week, Canopy Growth Corporation announced that it had established a $200M at-the-market program, which I consider bearish as it will dilute shareholders. This may represent an opportunity for option players.

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 5.0% decrease in the “Big 4” (all of which decreased). The stock-priced based metric decreased by 7.9%. These bearish indicators support my thesis that I do not see any catalyst to signal a turnaround in the foreseeable future.
 

Recap

1 of the 14 MCCCI stocks increased. Auxly Cannabis Group (CBWTF) continues to be an outlier, as it has demonstrated continued rice stability. I am maintaining a DEFCON 2 level to the MCCI. Let us see how this volatile sector has performed at the same time next week, shall we?

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