Image by Herbal Hemp from Pixabay

For the trading week ended November 1, 2024 my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 4.8% compared to the prior week when it increased by 5.1 %.  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 was 1 stock that increased by more than 10%, which is my metric for inclusion in this category: CBWTF + 13.1%. In my view, the increase in Auxly Cannabis Group Inc. is quizzical given their mediocre 2024 performance.

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 -12.1%. Canopy Growth Corporation may trade erratically until they issue earnings on 11/8/24.

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 4.9% decrease in the “Big 4” (all of which decreased) compared to the prior week when there was a 5.4% increase.  The stock-price based metric decreased by 7.4% compared to the prior week when it increased by 9.1%.

Recap

There was a 13.6% increase in the relative strength index compared to the prior week when there was a 7.2% decrease. 1 of the 14 MCCCI stocks increased, as lethargy returned to 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 Canasian Cannabis Report - Monday, Oct 21
The Canadian Cannabis Report - Monday, Oct. 14
The Canadian Cannabis Report - Monday Oct. 7