For the trading week ended October 15, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 4.3% compared to the prior week when it decreased by 1.6%. 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.

Image by Herbal Hemp from 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 2 stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: MEDIF -12.8% and VLNCF -12.3%. MediPharm Labs Corp. gave up ~50% of the previous week's gain and continues to be on my radar. My review of the 10/14/21 earnings call of The Valens Company Inc. gives me pause regarding the future performance of the company.

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 no change in the “Big Four” compared to the prior week when it decreased by 2.1%. Absent some sort of catalyst, I simply see no compelling evidence to be bullish on the sector.

Recap

There was no change in the relative strength index compared to the prior week when it decreased by 2.6%. It appears at present the status quo may be the rule rather than the exception for the foreseeable future. Let us see how this volatile sector has performed at the same time next week shall we?