For the trading week ended March 25, 2022, there was an increase of 25.9% in my proprietary Canadian Cannabis Company Index (MCCCI) compared to the prior week when there was an increase of 14.8%. 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 12 stocks that increased by more than 10% which is my metric for inclusion in this category: TLRY +56.0%, FLWPF + 39.1%, CBWTF +29.3%, HEXO +25.4%, VVCIF +25.0 %, ACB +24.6%, ALEAF +23.7%, CGC +20.9%, RDDTF +19.7%, CRON +18.1%, OGI +15.8% and EMHTF +12.5%.

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. Tilray, Inc.

Valuation Metric Review

There was an increase of 32.9% in the “Big Four” compared to the prior week when there was an increase of 13.1%. Tilray Brands, Inc. (TLRY) skyrocketed 56.0% on heavy volume.

Recap

17 of the 22 stocks in the portfolio increased. There was a decrease of 7.3% in the relative strength index compared to the prior week when there was no change. I attribute the significant increase in the MCCCI to news about possible pro-cannabis legislation in the U.S. It will be interesting to see if there is a spillover effect going forward, which in my view is a coin toss. Let us see how this volatile sector has performed at the same time next week shall we?