The Canadian Cannabis Report- Monday, Sept. 13

For the trading week ended September 10, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 5.8% compared to the prior week when it decreased by 1.2%. The index consists of 23 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.

Image by Herbal Hemp from Pixabay

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 4 stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: CBWTF -14.3%, VLNCF -11.9%, CGC -11.0%, and ACB -10.3%.

The Ugly

There were 2 stocks that decreased by 20% or more, which is my metric for inclusion in this category: BHHKF -43.8% and TGODF -24.4%. Benchmark Botanics Inc. is a micro microcap stock that I believe has little or no future. I pointed out last week that The Green Organic Dutchman Holdings Ltd. has serious financial issues, so I am not surprised at all about price pressure on the stock.

Recap

There was a decrease of 9.8% in the “Big Four” compared to the prior week when there was no change. I consider this steep decline to be a punch to the gut of the bulls. There was no change in the relative strength compared to the prior week when it decreased by 2.0%. Let us see how this volatile sector has performed at the same time next week, shall we?

Disclaimer: The information provided in this article is for general informational purposes only. 

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