E The Canadian Cannabis Report- Monday, Jan. 25

TM Editors Note: This article discusses one or more penny stocks and/or microcaps. Such stocks are readily manipulated; do your own careful due diligence.


For the trading week ended January 15, my proprietary Canadian Cannabis Company Index (MCCCI) was unchanged compared to the prior week when it increased by 19.1%.(corrected from 17.1% reported due to typo) 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. 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 2020 report (published here on TalkMarkets) showed that the MCCCI had decreased by 21% but it has trended positively so far in 2021 Now let us look at this week’s good, bad and ugly stocks.

The Good

There were 3 stocks that increased by more than 10%, which is my metric for inclusion in this category: ZBISF +30.3%, RDDTF +23.3%, and VVCIF +17.9%.

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: NXTTF -17.8%, VLNCF -13.9%, and CBWTF -10.7%.

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 de minimum increase of 0.05% in the “Big Four” compared to last week when it increased by 17.7%. The 3 stocks that decreased this week were all in the lowest quartile of the MCCI which may be an incipient indicator that the lowest capital companies are the most vulnerable, which has been my thesis since the inception of this report.

Recap

The relative strength index was unchanged compared to last week when it increased by 17.1%. Based on what I consider a “normal” trading pattern this week, I’m cautiously optimistic that there may be decreased sector price pressure in 2021 compared to 2020. Let us see how this increasingly volatile sector has performed at the same time next week shall we?

How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.
Weed Investor 3 weeks ago Member's comment

What are your thoughts on $CATV? Reverse merger 100% cannabis company soon to be pink current and a rockstar ceo!