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For the trading week ended November 8, 2024 my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 9.5% compared to the prior week when it increased by 4.8 %. 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 were 3 stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: TSNDF -13.6% NEPTF -11.8% and CGC -10.7%. In my view all of these stocks face continued price pressure in Q4 based on these recent events: • On 11/5/24 TerrAscend Corp. reported revenue and earnings misses. • On 11/8/24 Neptune Wellness Solutions Inc. closed at $0.015 and has a market capitalization of less than $74K. • On 11/8/24 Canopy Growth Corporation reported a 5% revenue decrease.

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 9.5% decrease in the “Big 4” (all of which decreased) compared to the prior week when there was a 4.9% increase. The stock-price based metric decreased by 11.0% compared to the prior week when it decreased by 7.4%.

Recap

There was no change in the relative strength index compared to the prior week when there was a 13.6% increase. None of the 14 MCCCI stocks increased, as lethargy lingers in the sector, after a 1 week hiatus. Based on the current landscape, a DEFCON 1 alert remains in effect. Let us see how this volatile sector has performed at the same time next week, shall we?

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The Canadian Cannabis Report - Monday, Nov. 4
The Canasian Cannabis Report - Monday, Oct 21
The Canadian Cannabis Report - Monday, Oct. 14