The Canadian Cannabis Report - Monday, Sept. 4
For the trading week that ended September 1, 2023, my proprietary Canadian Cannabis Company Index (MCCCI) increased by 25.3% compared to the prior week when it decreased by 10.7%. 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?
Photo by Kimzy Nanney on Unsplash
The Good
There were 4 stocks that increased by more than 10%, which is my metric for inclusion in this category: CGC +43.0%, TLRY +27.8% TRSSF +22.4%, and CRON +15.2%. I have absolutely, positively no idea regarding this meteoric rise in Canopy Growth Corporation which has decreased 76.2% YTD.
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 2 stocks that decreased by 20% or more, which is my metric for inclusion in this category: NEPT -24.5% and DLTNF -20.2%. Neptune Wellness Solutions Inc. was a “bad” stock the previous week
Valuation Metric Review
There was a 26.8% increase in the “Big Four” (all of which increased) compared to the prior week when there was a 10.7% decrease. Volatility in this group is increasing and quite frankly quizzical to me
Recap
There was no change in the relative strength index compared to the prior week when there was a 9.5% decrease. 7 of the 15 MCCCI stocks increased. 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, August 28, 2023
The Canadian Cannabis Report - Monday, Aug. 21
The Canadian Cannabis Report - Monday, Aug. 14
Disclaimer: The information provided in this article is for general informational purposes only.