For the trading week that ended September 9, my proprietary Canadian Cannabis Company Index (MCCCI) increased by 6.3% compared to the prior week when it decreased by 8.8%. The index consists of 22 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: EMHTF +33.3%. Emerald Health Therapeutics Inc. is a 4th quartile MCCCI stock that is involved in a proposed business combination with Skye Bioscience, Inc.
 

The Bad

There was 1 stock that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: TGODF -12.5%. The Green Organic Dutchman Holdings Ltd. was an “ugly” stock in the prior week which has an erratic trading pattern.
 

The Ugly

There was 1 stock that decreased by 20% or more, which is my metric for inclusion in this category: NXTTF -20.0%. Lifeist Wellness Inc. was a “good stock” in the prior week and maybe a rebound candidate based on recent positive news.
 

Valuation Metric Review

There was an increase of 5.6% in the “Big Four” (all of which increased) compared to the prior week when there was a decrease of 8.2%.
 

Recap

13 of the 22 stocks in the MCCCI increased. There was a decrease of 1.5% in the relative strength index compared to the prior week when there was a decrease of 10.4%. In my view, equilibrium in the sector will continue to be largely based on the performance of the 1st quartile MCCCI stocks. Let us see how this volatile sector has performed at the same time next week, shall we?

More By This Author:

The Canadian Cannabis Report - Monday Sept. 5
The Canadian Cannabis Report - Monday, Aug. 29
The Canadian Cannabis Report - Monday, Aug. 22