E The Canadian Cannabis Report- Monday, May 24

Image by Herbal Hemp from Pixabay

For the trading week ended May 21, my proprietary Canadian Cannabis Company Index (MCCCI) increased by 2.5% compared to the prior week when it decreased by 2.8%.

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.

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.


The Good

There were 4 stocks that increased by more than 10%, which is my metric for inclusion in this category: TGODF +18.3%, OGI +12.3%, ACB +10.9% and MEDIF +10.9%. On 5/12/21 The Green Organic Dutchman Holdings Ltd. reported first quarter 2021 results and stated that the “turnaround plan well under way.” 


The Bad

There was 1 stock that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: NCNNF -15.2%. Why HEXO is acquiring 48North Cannabis Corp. for $50M confounds me.


The Ugly

There were no stocks that decreased by 20% or more, which is my metric for inclusion in this category. There was no change in the “Big Four” compared to the prior week when there was a decrease of 10.6%.


Recap

There was a decrease of 4.0% in the relative strength index compared to the prior week when there was a decrease of 19.3%. Let us see how this volatile sector has performed at the same time next week, shall we?

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