E The Canadian Cannabis Report- Monday, April 12

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 April 9, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 9.4% compared to the prior week when it was unchanged. The index consists of 25 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. 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, shall we?

The Good

There were 3 stocks that increased by more than 10%, which is my metric for inclusion in this category: SPRWF +49.0% NCNNF + 13.9%, and WDDMF +13.8%. The meteoric rise in The Supreme Cannabis Company, Inc. was due to the 4/8/21 announcement that Canopy Growth Corporation is buying the company. Although I have predicted that consolidation in the sector was inevitable, I am truly dumbfounded by the ~66% premium price paid for what I consider a suboptimal company. I published a bearish article on 7/9/20 for SeekingAlpha regarding SPRWF and since then the stock is down ~70%. WDDMF rebounded from a 45% decrease in a little more than a month and has an erratic trading pattern.

The Bad

There were 2 stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: OGI -11.3% and APHA -10.1%. My private clients have been advised regarding my thoughts about where these 2 high-capitalization stocks may trade in the coming weeks.

The Ugly

There were no stocks that decreased by 20% or more, which is my metric for inclusion in this category. There was an 8.2% decrease in the “Big Four” compared to last week when there was no change.

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