For the trading week ended October 1, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 1.6 % compared to the prior week when it increased by 1.2%. The index consists of 23 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.

                                                        Image by Herbal Hemp from Pixabay

The MCCCIs 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.

THE GOOD

There was 1 stock that increased by more than 10% which is my metric for inclusion in this category: MediPharm Labs Corp. Cannabis Inc.MEDIF  +25.3%. is a low beta stock that has recently traded at a volume much  more than the 90-day average. I intend to do a deep dive into MEDIF based on investor interest which I will report on next week.

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

The “Big Four” decreased by 2.1% compared to the prior week when there was no change. For the 4th consecutive week, at least 3 of the 4 of the highest-capitalization MCCCI stocks decreased, which is indicative of how fragile the entire sector is at the present time.

RECAP

The relative strength index decreased by 2.6% compared to the prior week when it decreased by 1.4%.  Let us see how this volatile sector has performed at the same time next week shall we?