For the trading week ended October 29, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 1.5% compared to the prior week when it increased by 2.6%. 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 was 1 stock that increased by more than 10% which is my metric for inclusion in this category: VVCIF +17.7%. VIVO Cannabis Inc. has a paltry market capitalization of $31.5M which has recently expanded into Europe.

The Bad

 There was 1stock that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: HEXO -14.0%. HEXO Corp. has been a habitual disappointment for years, and in my view, there is no reason to believe that this trend will reverse itself anytime soon.

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 decrease of 6.2% in the “Big Four” compared to the prior week when there was an increase of 1.3%. Cannabis Champion Senator Elizabeth Warren (D-MA) renewed her decriminalization crusade last week which as of now has once again fallen on deaf ears.

Recap

There was an increase of 4.0% in the relative strength index compared to the prior week when there was a decrease of 2.6%. It would be premature to make any definitive conclusions at this point, so let us see how this volatile sector has performed at the same time next week shall we? Postscript: There was a delay in this week’s report due to a repositioning of the MCCCI.