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For the trading week that ended May 10, 2024, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 4.7% compared to the prior week when it increased by 8.6%. 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?
 

The Good

There were no stocks that increased by more than 10%, which is my metric for inclusion in this category:
 

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; CGC -12.5%. Canopy Growth Corporation is a proxy for the anticipated favorable sector legislation and will likely have an erratic trading pattern going forward.
 

The Ugly

There was 1 stock that decreased by 20% or more, which is my metric for inclusion in this category: NEPTF -20.6%. As I stated in the prior week’s report Neptune Wellness Solutions Inc. (which also was an “ugly stock” last week) is terminally unwell, and the consummate “dead stock walking”
 

Valuation Metric Review

There was a 5.1% decrease in the “Big 4” (3 of which decreased) compared to the prior week when there was a 13.3% increase. The volatility of Tilray Brands, Inc. (TLRY) continued as expected and decreased by 7.7%.
 

Recap

There was a 5.3% increase in the relative strength index compared to the prior week when there was a 2.7% increase. 3 of the 14 MCCCI stocks increased. In a future report, I will identify which MCCCI stocks are on the “danger list” and may not survive 2024. 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, May, 6
The Canadian Cannabis Report- Monday, April 29
The Canadian Cannabis Report - Monday, April 22