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For the trading week ended October 18, 2024 my proprietary Canadian Cannabis Company Index MCCCI increased by 2.4% compared to the prior week when it decreased by 3.2 %. The index consists of 14 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?

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 no stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category:

The Ugly

There was 1 stock that decreased by 20% or more, which is my metric for inclusion in this category: NEPTF -25.4%. Neptune Wellness Solutions Inc. has a petty cash market capitalization stock of $83.7K which I have considered a “dead stock walking” for several months.

Valuation Metric Review

There was a 2.1% increase in the “Big 4” (2 of which increased) compared to the prior week when there was a 3.2% decrease. The stock-price based metric increased by 6.6% compared to the prior week when it decreased by 6.1%.

Recap

There was a 18.5% increase in the relative strength index (a statistical anomaly) compared to the prior week when there was a 1.9% increase. 6 of the 14 MCCCI stocks increased, a reversal of a month-long trend. However the DEFCON 1 alert remains in effect. Let us see how this volatile sector has performed at the same time next week, shall we?

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The Canadian Cannabis Report - Monday, Oct. 14
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