For the trading week that ended October 21, my proprietary Canadian Cannabis Company Index (MCCCI) increased by 1.7% compared to the prior week when it decreased by 4.6%. 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 were 2 stocks that increased by more than 10%, which is my metric for inclusion in this category: FLWPF +100.0% and TGODF +40.0%. The Flowr Corporation and The Green Organic Dutchman Holdings Ltd. are 4th quartile MCCCI stocks subject to pronounced price fluctuations.

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 -18.8%.

On 10/17/22 Neptune Wellness Solutions Inc. announced that it would divest its cannabis assets for C$5.15M in a bid to become “a pure play consumer packaged goods company.”

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 no change in the “Big Four” compared to the prior week when there was a decrease of 3.0%.

Recap

Ten of the 22 stocks in the MCCCI increased. There was a decrease of 3.3% in the relative strength index compared to the prior week when there was a decrease of 4.7%.

Let us see how this volatile sector has performed at the same time next week, shall we?

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