For the trading week ended February 11, 2022, there was an increase of 20.7% in my proprietary Canadian Cannabis Company Index (MCCCI) compared to the prior week when there was a increase of 0.09%. The index consists of 22 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. Image by Herbal Hemp from Pixabay The 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.

Image by Herbal Hemp from Pixabay

The Good

There were 8 stocks that increased by more than 10% which is my metric for inclusion in this category: ALEAF +33.7%, TLRY +19.7%, CGC +17.4%, VLNS +16.4%, HEXO +15.0%, OGI +13.2%, WDDMF +11.4%, and ROMJF +10.7%. HEXO Corp. and Rubicon Organics Inc. are repeaters from the prior week’s “good” list. The continued spike in HEXO continues to confound me, based on their weak financials.

The Bad

There were 3 stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: VLNS -16.4%, CBWTF -15.0% and MEDIF -13.3%.

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 increase of 16.6% in the “Big Four” compared to the prior week when there was an increase of 7.9%. All of the “Big Four” increased, and CGC, CRON, and TLRY achieved “good” status which had a profound effect on the performance of the MCCCI.

Recap

Only 3 of the 22 stocks in the portfolio decreased. There was an increase of 27.3% in the relative strength index compared to the prior week when there was an increase of 8.0%. Let us see how this volatile sector has performed at the same time next week shall we?