For the trading week that ended October 28, my proprietary Canadian Cannabis Company Index (MCCCI) increased by 11.1% compared to the prior week when it increased by 1.7%. 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: CGC +34.6% and ACB +17.4%. On 10/26/22 Canopy Growth Corporation was upgraded to hold at Canaccord Genuity on plans to create US holding company.
 

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 an 11.4% increase in the “Big Four” (all of which increased) compared to the prior week when there was no change. I am somewhat surprised at the material price spike of Canopy Growth Corporation (#1 in market capitalization in the MCCCI portfolio) and I have advised my clients accordingly.
 

Recap

12 of the 22 stocks in the MCCCI increased. There was an increase of 3.4% in the relative strength index compared to the prior week when there was a decrease of 3.3%. 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, Oct. 24
The Canadian Cannabis Report - Monday, Oct. 17
The Canadian Cannabis Report - Monday, Oct. 10