For the trading week that ended March 15, 2024, my proprietary Canadian Cannabis Company Index (MCCCI) was unchanged compared to the prior week when it decreased 6.7%. 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: TSNDF +10.1%. TerrAscend Corp. is a “Big 4” stock and was the biggest winner in the MCCCI. On 3/14/24 the company reported GAAP revenue and earnings misses for Q4 and full year ended 12/31/23. I intend to closely monitor how TSNDF trades going forward as a potential “stock to watch” as I have previously expressed reservations about this company.

The Bad

There were no stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category:

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 an 8.1% increase in the “Big 4” (all of which increased) compared to the prior week when there was no change

Recap

There was a 5.3% decrease in the relative strength index compared to the prior week when was no change. My current thesis for the Canadian cannabis sector is still a work in progress. Specifics will be announced at the end of Q1 trading. Let us see how this volatile sector has performed at the same time next week, shall we?

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