MACRO

My MCCCI has decreased 36% YTD, which mirrors the sentiment that I expressed regarding my 2020 industry outlook on 10/27/19. At that time I presented a bearish thesis about MDCL (now SHWZ) which has decreased ~ 50% since then and said: “My preliminary “what if” scenarios (computed from my proprietary algorithmic model) suggest that a decrease of 20% or more is likely, although an equilibrium price may not be finalized until Q3 or Q4 of 2020.” I expect continued froth in the Canadian cannabis sector going forward based on my modeling work.

MICRO

The best performing stock in the portfolio is Neptune Wellness Solutions Inc. (Nasdaq: NEPT) which has increased 6.6% YTD. Although I am not interested in investing in any cannabis stocks given the volatility of the sector readers who may be are advised that NEPT is a “stock to watch “based on recent company news. The worst performing stock in the portfolio is Benchmark Botanics Inc. (pink sheet BHHKF) which has decreased 99.9% YTD. Needless to say, this company has a very dim (if any) future.

RECAP

Only 3 of the 25 stocks in my MCCCI have increased YTD which acquits my 2020 industry outlook of 10/29/19. The lackluster Canadian cannabis market faces a myriad of challenges going forward. Many of the portfolio holdings are high beta, a major caveat. Please understand that the Canadian Cannabis Report tracks the performance of this volatile sector via my proprietary MCCCI and is not intended to provide investment advice of any sort.