E The Canadian Cannabis Report - Monday, May 17

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 May 14, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 2.8% compared to the prior week when it decreased by 6.9%. 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.

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 9 stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: TGODF -19.4%, HEXO -17.2%, ZBISF -15.2% , TLRY-13.9%, SPRWF - 13.2%,VLNCF -12.2%, MEDIF -12.2%, OGI -12.0%, FLWPF -11.6%.

The Ugly

There were 3 stocks that decreased by 20% or more, which is my metric for inclusion in this category: CBWTF -26.3%, ACB - 22.9% and NXTTF -21.0% There was a decrease of 10.6% in the “Big Four” compared to the prior week when there was a decrease of 5.2%.

Recap

There was a decrease of 19.3% in the relative strength index compared to the prior week when there was an increase of 7.9%. This sea change is problematic, and I intend to closely monitor trading volume as an indicator of sector sentiment. Let us see how . Let us see how this volatile sector has performed at the same time next week, shall we?

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