For the trading week that ended October 27, 2023, my proprietary Canadian Cannabis Company Index (MCCCI) increased by 18.8% compared to the prior week when it increased by 1.7%. 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?

Image Source: Pixabay

The Good

There were 2 stocks that increased by more than 10%, which is my metric for inclusion in this category: CGC +21.1% and OGI +14.3%. Canopy Growth Corporation has been on an upward trajectory recently, but long-term I am wary of the stock which has a “sell” rating by Wall Street.

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. 

Valuation Metric Review

There was a 13.2% increase.in the “Big Four” (all of which increased) compared to the prior week when there was no change.

Recap

There was a 9.4% increase in the relative strength index compared to the prior week when there was an 11.1% decrease. 7 of the 14 (50%) MCCCI stocks increased, which is much larger % compared to the past 7 weeks. On a broader level, the 6 largest capitalization MCCCI stocks increased. Finally, Flowr Corporation (FLWPF) is now defunct, which reduces the number of stocks in the portfolio to 14. Let us see how this volatile sector has performed at the same time next week, shall we?

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