The Canadian Cannabis Report - Monday, March 4

Herb, Hemp, Plant, Cab, Cannabinoid

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For the trading week that ended March 1, 2024, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 3.5% compared to the prior week when it decreased 3.8%. The index consists of 14 stocks, many of which are among the most widely held holdings of the three 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?
 

The Good

There was 1 stock that increased by more than 10%, which is my metric for inclusion in this category: NEPT +23.7%. Neptune Wellness Solutions Inc. has a paltry market capitalization of $1.9M and trades at $0.42, which means that it has a miniscule effect on the MCCCI.
 

The Bad

There was 1 stock that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: CRON -10.2%. On 2/29/24 Cronus Group Inc. reported disappointing Q4 and full-year business results which I believe may hamstring the stock price going forward. Option players will be at the ready in response to this surprising development.
 

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 4.3% decrease in the “Big 4” (all of which decreased) compared to the prior week when there was a 2.8% decrease (initially incorrectly reported as 3.8%).
 

Recap

There was no change in the relative strength index compared to the prior week when there was a 5.0% decrease. My current thesis for the Canadian cannabis sector is still a work in progress. Spoiler alert- expect a caveat emptor. 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, Feb. 26
The Canadian Cannabis Report - Monday, Feb. 19
The Canadian Cannabis Report - Monday, Feb. 12

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

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