E The Canadian Cannabis Report - Monday, May 10

TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.


For the trading week ended May 7, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 6.9% compared to the prior week when it increased by 2.1%. The index consists of 25 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. MCCCIs 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.

Image by Herbal Hemp from Pixabay

The Good

There were 3 stocks that increased by more than 10%, which is my metric for inclusion in this category: ZBISF +15.5%, TGODF +13.1%, and VLNCF +11.4%. All of these stocks are repeaters from last week’s “good” category. I refer readers to that report regarding my thoughts about Zenabis Global Inc., The Green Organic Dutchman Holdings Ltd. And The Valens Company Inc.

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. There was a decrease of 5.2% in the “Big Four” compared to the prior week when there was a decrease of 0.5%.

Recap

There was an increase of 7.9% in the relative strength index compared to the prior week when there was an increase of 2.9%. The MCCCI was rebalanced this week as a result of the “perfect match” merger between APHA and TLRY, which received a double upgrade by Jefferies analyst Owen Bennett as reported by The Motley Fool on 5/7/21. I have shared my thoughts regarding this $23 price target with my private clients and without contravening any confidentialities suffice it to point out that Tilray, Inc. has not traded above $23 since 10/9/19. Let us see how at the same time next week, shall we?

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