For the week ending March 14, 2025, my proprietary Canadian Cannabis Company Index (MCCCI) saw a decline of 7.5%. This index, comprising 14 stocks, serves as a reflection of the Canadian cannabis sector’s performance particularly influenced by prominent holdings within ETFs MJ, CNBS, and THCX. MCCCI's differentiated business model is both weighted and market capitalization-based because I believe 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. Rubicon Organics Inc. (ROMJF) This stock rose 14.1% making it the standout performer of the week. According to Mugglehead, the company celebrated a significant milestone this week after making its first-ever international shipment to Poland which bolsters its growth prospects. ROMJF has been a “good” stock for 3 consecutive weeks.

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. Auxly Cannabis Group Inc. (CBWTF) fell by 11.7%. I believe the large percent increase in short interest is a concern going forward.

The Ugly

There were no stocks that decreased by 20% or more, which is my metric for inclusion in this category.

Valuation Metric Review 

The index’s “Big 4” stocks- CGC, CRON, TLRY and TSNDF (all of which decreased) collectively saw a 7.5% decline. In addition, the stock-priced-based metric (coincidentally) also fell 7.5%. These figures suggest a bearish trend with no immediate catalysts for a sector turnaround.

Recap

Out of the 14 stocks in the MCCCI only 1 increased. Rubicon Organics Inc. (ROMJF) arguably is a stock to watch but not worthy of investment consideration in my view given its market capitalization of $20.7M and $0.35 stock price. Based on the current market conditions, the DEFCON level for the MCCI remains at 2. Let us see how this volatile sector has performed at the same time next week, shall we?

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