Photo by Kimzy Nanney on Unsplash For the trading week that ended September 8, 2023, my proprietary Canadian Cannabis Company Index (MCCCI) increased 10.9% compared to the prior week when it increased 25.3%. 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?

Image by Herbal Hemp from Pixabay

The Good

There were 3 stocks that increased by more than 10%, which is my metric for inclusion in this category: CGC +60.8%, NEPT +30.0%, and ACB +12.0%. Canopy Growth Corporation has been on a meteoric rise for 3 weeks. Neptune Wellness Solutions Inc. has an erratic trading history and has been an “ugly” stock and a “bad” stock in the previous 2 weeks.

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 12.0% increase in the “Big Four” (all of which increased for the 2nd consecutive week) compared to the prior week when there was a 26.8% increase. Volatility in this group is increasing and quite frankly quizzical to me. But for now the mantra “don’t fight the Fed” is appropriate.

Recap

There was no change in the relative strength index compared to the prior week when there was also no change. 11 of the 15 MCCCI stocks increased. Let us see how this volatile sector has performed at the same time next week, shall we?

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