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?

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?

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