TM Editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence.

For the trading week ended November 19, there was a de minimis 0.07% increase in my proprietary Canadian Cannabis Company Index (MCCCI) compared to the prior week when there was a 20.8% 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 were 7 stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: ALEAF -18.4%, VLNCF -17.9%, ACB -17.2%, TLRY -15.5%, EMHTF -15.1%, OGI -14.2% and VVCIF -10.7%. Aleafia Health Inc. was the only “ugly” stock last week, and it appears the company is in a difficult position, both financially and operationally.

The Ugly

There were 5 stocks that decreased by 20% or more, which is my metric for inclusion in this category: CBWTF -29.5%, HEXO -28.9%, MEDIF -28.2%, CRON -21.2%, and CGC -20.2%.

VALUATION METRIC REVIEW There was a sharp decrease of 19.9% in the “Big Four” compared to the prior week when there was an increase of 26.4%. This sea change underscores the volatility of the sector as a whole, the frothiness of which is endemic. And to reiterate, federal decriminalization of cannabis is an ongoing debate, the outcome of which will have a “trickle-down” effect on the Canadian cannabis sector.

Recap

There was an increase of 3.8% in the relative strength index compared to the prior week when there was a decrease of 3.2%. The import of this metric increases the possibility that yet another re-adjustment of the MCCCI will occur in the foreseeable future, especially if my recent tease regarding “credible chatter” materializes in Q4.