The Canadian Cannabis Report - Monday, March 25

For the trading week that ended March 22, 2024, my proprietary Canadian Cannabis Company Index (MCCCI) increased 36.5% compared to the prior week when it when was unchanged. 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?

Herb, Hemp, Plant, Cab, Cannabinoid

Image Source: Pixabay

The Good

There was 7 stocks that increased by more than 10%, which is my metric for inclusion in this category: ACB +41.9%, OGI +29.0%, TLRY +26.0%, CBWTF +25.8%, CRON +21.4%, MEDIF +14.5%, and CGC +12.0%.

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 a 26.0% increase in the “Big 4” (3 of which increased) compared to the prior week when there was an 8.1% increase. Of more import is that all of these were “good” stocks as referenced above.

Recap

There was a 19.4% increase in the relative strength index compared to the prior week when was a 5.3% decrease. The sea change in all 3 metrics is historic for the MCCCI but I am not convinced that it is sustainable. Let us see how this volatile sector has performed at the same time next week, shall we?


More By This Author:

The Canadian Cannabis Report - Monday, March 18
The Canadian Cannabis Report - Monday, March 11
The Canadian Cannabis Report - Monday, March 4

Disclaimer: The information provided in this article is for general informational purposes only. 

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