For the trading week that ended March 10, 2023, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 8.3% compared to the prior week when it decreased by 4.9 %. The index consists of 18 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 by Herbal Hemp from Pixabay
 

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 6 stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: DLTNF -17.4%, TLRY -13.0%, ACB  -12.2%, HEXO -11.9%, VVCIF -11.9%, and OGI -11.5%. Delta 9 Cannabis Inc. is the 4^th quartile stock with an $8.9M market capitalization which has an erratic trading pattern.
 

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 11.3% in the “Big Four” (all of which decreased for the 3rd consecutive week) compared to the prior week when there was a decrease of 4.7%. There is now 1 less member of the MCCCI as The Valens Company Inc. has been removed from the MCCCI as it was recently acquired by a company that does not meet the portfolio criteria. 
 

Recap      

For the 3rd consecutive week, none of the 18 stocks in the MCCCI increased. There was a 7.5% decrease in the relative strength index compared to the prior week when there was a 4.8% decrease. In my view, the sector is in bear market territory based on worsening metrics. Let how this volatile sector performed at the same time next week, shall we?

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The Canadian Cannabis Report - Monday, March 6
The Canadian Cannabis Report - Monday, Feb. 27
The Canadian Cannabis Report - Monday, Feb. 20