For the trading week that ended December 1, 2023, my proprietary Canadian Cannabis Company Index (MCCCI) increased by 10.4% compared to the prior week when it decreased by 6.0%. 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?

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The Good

There were 2 stocks that increased by more than 10%, which is my metric for inclusion in this category: ROMJF +23.1% and CGC +12.3%. Rubicon Organics Inc. did not issue any news that might help explain this sharp price spike.

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 an 11.5% increase in the “Big Four” (3 of which increased) compared to the prior week when there was a 6.5% decrease.

Recap

There was a 17.1% increase in the relative strength index compared to the prior week when there was no change. 7 of the 14 MCCCI stocks increased, a recent high. The increase in all 3 metrics perhaps means there may be a gap in price pressure, at least short-term. Let us see how this volatile sector has performed at the same time next week, shall we?

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