For the trading week ended November 5, there was no change in my proprietary Canadian Cannabis Company Index (MCCCI) compared to the prior week when it decreased by 1.5%. 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. Image by Herbal Hemp from Pixabay The MCCCIs 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.

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: CBWTF +10.5%. Perhaps the recent interest in Auxly Cannabis Group Inc. is related to their strategic partnership with Imperial Brands PLC.

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 decrease of 3.2% in the “Big Four” compared to the prior week when there was a decrease of 6.2%. Absent some material news developing, I expect the highest capitalization MCCCI stocks to be under pressure, with TLRY being the most volatile constituent.

Recap

There was an increase of 1.9% in the relative strength index compared to the prior week when there was an increase of 4.0%. Let us see how this volatile sector has performed at the same time next week shall we?