For the trading week that ended March 17, 2023, my proprietary Canadian Cannabis Company Index (MCCCI) was unchanged compared to the prior week when it decreased by 8.3 %. 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 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 increase of 3.0% in the “Big Four” compared to the prior week when there was a decrease of 11.3%. Canopy Growth Corporation (CGC) has been on a 3 week tailspin which has prompted me to alert my private clients with option interest.
 

Recap

2 of the 18 stocks in the MCCCI increased, which is an improvement compared to recent portfolio performance. There was an 11.1% decrease in the relative strength index compared to the prior week when there was a 7.5% decrease. This is more evidence that the sector is in bear market territory based on worsening metrics. Let us see how this volatile sector has performed at the same time next week, shall we?

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The Canadian Cannabis Report - Monday, March 13
The Canadian Cannabis Report - Monday, March 6
The Canadian Cannabis Report - Monday, Feb. 27