For the trading week ended March 11, 2022, there was a decrease of 3.5% in my proprietary Canadian Cannabis Company Index (MCCCI) compared to the prior week when there was a decrease of 10.3%. 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 was 1 stock that increased by more than 10% which is my metric for inclusion in this category: VLNS +10.9%. The Valens Company Inc. did not report any news during the 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: NEPT -13.6%. Neptune Wellness Solutions Inc. did not report any news during the week.
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 2.5% in the “Big Four” compared to the prior week when there was a decrease of 15.1%. For the 3rd consecutive week all of the “Big Four” decreased.
Recap
Only 4 of the 22 stocks in the portfolio increased. There was a decrease of 9.0% 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?
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