E The Canadian Cannabis Report - Monday, July 26

For the trading week ended July 23, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by a de minimis 1.1% compared to the prior week when it decreased by 11.6%. The index consists of 23 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.

Image by Herbal Hemp from Pixabay

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 no stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category. Hexo Corp. (HEXO) continued to be under pressure and decreased 5.02%. My view is consistent with SeekingAlpha’s very bearish quant rating.

The Ugly

There were no stocks that decreased by 20% or more, which is my metric for inclusion in this category.

Recap

There was no change in the “Big Four” compared to the prior week when there was a decrease of 12.9%. Tilray, Inc. (TLRY) was the worst performer among this subset, and I have advised my private clients to closely monitor this volatile stock. There was an increase of 8.6% in the relative strength index compared to the prior week when there was a decrease of 3.7%. Let us see how this volatile sector has performed at the same time next week, shall we?

Disclaimer: The information provided in this article is for general informational purposes only. 

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