E The Canadian Cannabis Report - Monday, March 15

TM editors' note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence. 


For the trading week ended March 12, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 6.7% compared to the prior week when it decreased by 8.5%. 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. 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. Now let us look at this week’s good, bad, and ugly stocks.

The Good

There were 11 stocks that increased by more than 10%, which is my metric for inclusion in this category: OGI +65.7%, APHA +27.3%, ZBSIF +22.6%, NEPT +20.6%, VLNCF +19.1%, HEXO +16.7%, CBWTF + 13.7%, VVCIF 10.9%, SPRWF + 10.8%, ALEAF +10.6% and ACB +10.1%. OrganiGram Holdings Inc. spiraled in large part due to news regarding a cannabis product deal with British American Tobacco p.l.c.(BTI). I have alerted my option-oriented clients as to my view on how OGI may trade on a short-term basis.

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 increase of 10.5% in the “Big Four” compared to last week when there was a decrease of 8.5%. This represented a 180-degree turn, as all of these stocks increased this week.

Recap

There was a decrease of 1.4% in the relative strength index compared to last week when there was an increase of 2.8%. Let us see how this volatile sector has performed at the same time next week shall we?

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