For the trading week ended November 26, there was an increase of 1.1% increase in my proprietary Canadian Cannabis Company Index (MCCCI)  compared to the prior week when there was a 0.07% increase. 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.

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 were no stocks that increased by more than 10% which is my metric for inclusion in this category.  

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: ROMJF -11.5%. Rubicon Organics Inc. has been experiencing some price pressure despite a recent positive earnings report.

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 sharp decrease of 4.5% in the “Big Four” compared to the prior week when there was an increase of 19.9%.  

Recap

There was a decrease of 3.1%  in the relative strength index compared to the prior week when there was an increase of 3.8%.  Let us see how this volatile sector has performed at the same time next week shall we?