For the trading week that ended November 4, my proprietary Canadian Cannabis Company Index (MCCCI) increased by 3.2% compared to the prior week when it increased by 11.1%. The index consists of 22 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 by Herbal Hemp from Pixabay
 

The Good

There was 1 stock that increased by more than 10%, which is my metric for inclusion in this category: ALEAF +57.7%. Aleafia Health Inc. is a 3rd quartile MCCCI stock and did not issue any news to explain the price increase.
 

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: NEPT -11.3%. Neptune Wellness Solutions Inc. is a 3rd quartile MCCCI stock and did not issue any news to explain the price 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 an increase of 3.5% in the “Big Four” (3 of which increased) compared to the prior week when there was an increase of 11.4%.
 

Recap

8 of the 22 stocks in the MCCCI increased. There was a decrease of 4.9% in the relative strength index compared to the prior week when there was an increase of 3.4%. 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 Oct. 31
The Canadian Cannabis Report - Monday, Oct. 24
The Canadian Cannabis Report - Monday, Oct. 17