E The Canadian Cannabis Report - Monday, January 4

For the (shortened) trading week ended January 1, my (proprietary) Canadian Cannabis Company Index (MCCCI) decreased by 5.3% compared to the prior week when it decreased by 2.4%. The index consists of 25 stocks, many of which are among the most widely held holdings of the 3 ETFs (MJCNBS, 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. My mid-year report (published here on TalkMarkets) showed that the MCCCI had decreased by 36% YTD, which I stated may be a guidepost for the rest of 2020. I expect to submit a 2020 year-end report mid-week. Now let us look at this week’s good, bad and ugly stocks.

green plant on blue plastic pot

Image Source: Unsplash

The Good

There was 1 stock that increased by more than 10%, which is my metric for inclusion in this category: NCNNF +20%.

48North Cannabis Corp. is the lowest capitalization stock in the MCCCCI, and its performance had a negligible effect on the portfolio.

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 no stocks that decreased by 20% or more, which is my metric for inclusion in this category.

Valuation Metric Review

There was a 5.7% decrease in the “Big Four” compared to the prior week when it decreased by 2.3%. Daily volume was low, and there was 1 less trading day due to the holiday which may have contributed to the results.

Recap

The relative strength index increased by a negligible ~1% compared to the prior week when it increased by 10.2%. For the 3rd consecutive week, all of the “Big Four” decreased in value.

Let us see how this increasingly volatile sector has performed at the same time next week shall we?

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