For the trading week that ended October 6, 2023, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 8.6% compared to the prior week when it increased by 4.1%. 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?

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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 3 stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: TLRY -14.7%, CGC -11.9%, and TRSSF -11.9%. Tilray Brands, Inc. appears headed to $2 per share or less. Of concern to me going forward is that 3 of the 4 highest market capitalization stocks (A/K/A the “Big Four”) in the MCCCI were “bad” stocks this week

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 9.9% decrease in the “Big Four” compared to the prior week when there was a 8.1% increase.

Recap

There was a 9.1% decrease in the relative strength index compared to the prior week when there was no change. 13 of the 15 MCCCI stocks decreased. Let us see how this volatile sector has performed at the same time next week, shall we?

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