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For the trading week ended May 17, 2024, my proprietary Canadian Cannabis Company Index (MCCCI) increased by 8.8% compared to the prior week when it decreased by 4.7%. 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 3 stocks that increased by more than 10%, which is my metric for inclusion in this category: CGC +18.2%, OGI +12.9%, and ACB 11.6%. Canopy Growth Corporation was a “bad stock” in the prior week and its performance mimics the volatility of this high-beta stock.
 

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: CBWTF -17.6%. Auxly Cannabis Group Inc. did not issue any news to help understand this decline.
 

The Ugly

There was a 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 an 8.5% increase in the “Big 4” (all of which increased) compared to the prior week when there was a 5.1% decrease.
 

Recap

There was a 12.7% decrease in the relative strength index compared to the prior week when there was a 5.3% increase. 6 of the 14 MCCCI stocks increased. I am still working on 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