For the trading week ended March 18, 2022, there was an increase of 14.8% in my proprietary Canadian Cannabis Company Index (MCCCI) compared to the prior week when there was a decrease of 3.5%. 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 were 5 stocks that increased by more than 10% which is my metric for inclusion in this category: VLNS +30.0%, CGC +19.3%, CRON +18.4%, OGI +16.0% and ACB +14.9%. The Valens Company Inc. did not report any news during the week but has been el fuego in recent weeks.

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: 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: ALEAF -36.8% and NEPT -30.0%. Both of these 2nd quartile stocks have been serial underperformers.

Valuation Metric Review

There was an increase of 13.1% in the “Big Four” compared to the prior week when there was a decrease of 2.5%. For the 1st time in 4 weeks, all of the “Big Four” increased and 3 of them were on the “good” list.

Recap

10 of the 22 stocks in the portfolio increased. There was no change in the relative strength index compared to the prior week when there was a decrease of 9.0%. This improvement bodes well for the sector, but it would be premature to get bullish. Let us see how this volatile sector has performed at the same time next week shall we?