For the trading week that ended October 27, 2023, my proprietary Canadian Cannabis Company Index (MCCCI) increased by 1.7% compared to the prior week when it decreased by 11.0%. The index consists of 15 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 Source: Pixabay

The Good

There were no stocks that increased by more than 10%, which is my metric for inclusion in this category. 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 was 1 stock that decreased by 20% or more, which is my metric for inclusion in this category: DLTNF -31.4%. Delta 9 Cannabis Inc. continues to ping-pong price-wise which is inherent in a thinly-traded $5.2M company.

Valuation Metric Review

There was a no change in the “Big Four” (2 of which increased) compared to the prior week when there was a 12.7% decrease.

Recap

There was an 11.1% decrease in the relative strength index compared to the prior week when there was a 5.3% decrease. 4 of the 15 MCCCI stocks increased, which is much improved compared to the average return over the last 6 weeks. Is this increase a 1-off? To be determined but I am skeptical long-term. Let us see how this volatile sector has performed at the same time next week, shall we?

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