For the trading week ended October 7, 2024 my proprietary Canadian Cannabis Company Index MCCCI decreased by 2.0% compared to the prior week when it increased by 1.1%. The index consists of 14 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 was 1 stock that increased by more than 10%, which is my metric for inclusion in this category. NEPTF +22.3%. Neptune Wellness Solutions Inc. market capitalization of $114K is the lowest in the MCCCI. By contrast, Tilray Brands, Inc. market capitalization of $1.5B is the highest in the MCCCI.

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 2.4% decrease in the “Big 4” compared to the prior week when there was a 1.1% increase. Cronos Group Inc. (CRON) increase of 3.3% was the only gainer in the cohort. The stock-price based metric decreased by 1.9% compared to the prior week when it was unchanged (correction of the prior week report.)

Recap

There was a 1.9% decrease in the relative strength index compared to the prior week when there was a 3.6% decrease.(correction of the prior week report) 2 of the 14 MCCCI stocks increased, as referenced earlier in this report. Given the continued lackluster performance of all metrics upon which the MCCCI is based, a DEFCON 1 alert remains in effect. Let us see how this volatile sector has performed at the same time next week, shall we?

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The Canadian Cannabis Report- Monday, Sept. 30
The Canadian Cannabis Report - Monday, Sept. 9
The Canadian Cannabis Report - Monday, Sept. 2