E The Canadian Cannabis Report- Monday, March 29

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 26, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 7.6% compared to the prior week when it decreased by 0.07%. 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, shall we? Source: Unsplash

The Good

There were 2 stocks that increased by more than 10%, which is my metric for inclusion in this category: DLTNF +17.6% and VLNCF +17.3%.

The Bad

There were 10 stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: ACB -10.1%, APHA -10.4%, 10.1%, OGI -12.3%, HEXO -12.3%, MEDIF -12.6%, NEPT -16.0%, ALEAF -13.6% TGODF -11.5%, WDDMF -14.5% and NCNNF -11.0%.

Readers may recall that I issued a trading alert regarding OrganiGram Holdings, Inc. in my 3/15 report, and the stock has decreased by 25.7% since then.

The Ugly

There were no stocks that decreased by 20% or more, which is my metric for inclusion in this category. There was a decrease of 7.4% in the “Big Four” compared to last week when there was an increase of 10.5%. I see no end in sight short-term for this the roller coaster ride absent a catalyst of some sort given that 9 of the 10 highest capitalization MCCCI stocks decreased this week.

Recap

There was a decrease of 4.4% in the relative strength index compared to last week when there was an increase of 10.4% due to the continued price weakness of the higher capitalization MCCCI stocks whose performance sharply influences the Index. Let us see how this volatile sector has performed at the same time next week shall we?

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