For the trading week that ended March 24, 2023, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 1.2% compared to the prior week when it was unchanged. 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 a decrease of 1.4% in the “Big Four” compared to the prior week when there was an increase of 3.0%. Canopy Growth Corporation (CGC) is now in a 4 week tailspin which has prompted me to alert my private clients with option interest.
 

Recap

3 of the 18 stocks in the MCCCI increased, which is an improvement compared to recent portfolio performance. There was a 3.1% decrease in the relative strength index compared to the prior week when there was an 11.1% decrease. The malaise in the sector continues based on challenging metrics. OrganiGram Holdings Inc. (OGI) (+5.8%) was the biggest gainer and Lifeist Wellness Inc. (NXTTF) (-6.2%) was the biggest loser. Let us see how this volatile sector has performed at the same time next week, shall we?

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