For the trading week that ended November 25, my proprietary Canadian Cannabis Company Index (MCCCI) increased by 4.3% compared to the prior week when it decreased by 7.4%. The index consists of 21 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 were 3 stocks that increased by more than 10%, which is my metric for inclusion in this category: MEDIF +27.7%, VVCIF +24.6%, and CBWTF +23.1%. MediPharm Labs Corp. and Auxly Cannabis Group Inc. were both “ugly” stocks in the prior week and have a history of erratic trading patterns.
 

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 de minimis decrease of 1.1% in the “Big Four” (all of which decreased) compared to the prior week when there was a decrease of 8.1%.
 

Recap

6 of the 21 stocks in the MCCCI increased. But more significant was that 2 of the “Big Four” were on the “bad” list and the 2 “ugly” stocks decreased precipitously. There was an increase of 3.7% in the relative strength index compared to the prior week when there was a decrease of 6.9%. Let us see how this volatile sector has performed at the same time next week, shall we?

Note: Emerald Health Therapeutics, Inc. was removed from the MCCCI due to its business combination with Skye Bioscience, Inc.

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