For the trading week ended December 30, there was a decrease of 9.0% in my proprietary Canadian Cannabis Company Index (MCCCI) compared to the prior week when there was no change. 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.

The Good

There were no stocks that increased by more than 10% which is my metric for inclusion in this category.

The Bad

There were 7 stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: MEDIF -15.9%, HEXO -13.2%, VLNS -13.0%, OGI -12.5%, ACB -11.6%, EMHTF -10.5% and TLRY -10.3%,

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 a sharp decrease of 11.6% in the “Big Four” (all of which declined) compared to the prior week when there was no change.

Recap

There was no change in the relative strength index compared to the prior week when there was a decrease of 3.9%. Let us see how this volatile sector has performed at the same time next week shall we?