For the trading week that ended November 18, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 7.4% compared to the prior week when it increased by 13.3%. The index consists of 22 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. Now let us look at this week’s good, bad, and ugly stocks, shall we?

Image by Herbal Hemp from Pixabay

The Good

There was 1 stock that increased by more than 10%, which is my metric for inclusion in this category: TRSSF + 10.8%. On 11/14/22 TerrAscend Corp. reported Q3 earnings and a significant improvement in cash flow from operations.

The Bad

There were 4 stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: TGODF -14.4%, ACB -11.1%, CGC -10.7%, and RDDTF -10.5%. The Green Organic Dutchman Holdings Ltd. will announce earnings on 11/23/22.

The Ugly

There were 2 stocks that decreased by 20% or more, which is my metric for inclusion in this category: CBWTF -54.7% and MEDIF -31.0%. On 11/14/22 Auxly Cannabis Group Inc. reported lackluster Q3 results. Valuation Metric Review There was a decrease of 8.1% in the “Big Four” (3 of which decreased) compared to the prior week when there was an increase of 14.8%. The outlier in this cohort was Cronus Group Inc. (CRON) which I wrote favorably about in last week’s report.

Recap

3 of the 22 stocks in the MCCCI increased. But more significant was that 2 of the “Big Four” were on the “bad” list and the 2 “ugly” stocks decreased precipitously. There was a decrease of 6.9% in the relative strength index compared to the prior week when there was no change. Let us see how this volatile sector has performed at the same time next week, shall we?

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