The Canadian Cannabis Report - Monday, Oct. 2

green cannabis leaves and black glass drops bottle

Photo by Kimzy Nanney on Unsplash

For the trading week that ended September 29, 2023, my proprietary Canadian Cannabis Company Index (MCCCI) increased by 4.1% compared to the prior week when it decreased by 24.6%. The index consists of 15 stocks, many of which are among the most widely held holdings of the 3 ETFs (MJCNBS, 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?

The Good

There were no stocks that increased by more than 10%, which is my metric for inclusion in this category.


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: OGI -11.4%. OrganiGram Holdings Inc. was also a “bad” stock in the prior week.


The Ugly

There was 1 stock that decreased by 20% or more, which is my metric for inclusion in this category: ACB -20.9%. As I said in the prior week’s report, I have advised my private option clients that I am wary of Aurora Cannabis Inc. going forward based on their fragile financials.


Valuation Metric Review

There was a 8.1% increase in the “Big Four” compared to the prior week when there was a 29.1% decrease.


Recap

There was no change in the relative strength index compared to the prior week when there was a 9.0% decrease. 13 of the 15 MCCCI stocks decreased. Let us see how this volatile sector has performed at the same time next week, shall we? 



More By This Author:

The Canadian Cannabis Report - Monday, Sept. 25
The Canadian Cannabis Report- Monday, Sept. 18
The Canadian Cannabis Report - Monday, Sept. 11

Disclaimer: The information provided in this article is for general informational purposes only. 

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