For the trading week ended September 24, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 6.3% compared to last week when it decreased by 1.9%.

Image by Herbal Hemp from Pixabay

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. The 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.

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 3 stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: ALEAF -15.1%, NXTTF -14.4%, and ACB -10.2%.

The Ugly

There were no stocks that decreased by 20% or more, which is my metric for inclusion in this category: Valuation Metric Review - The “Big Four” decreased by 12.2% compared to the prior week when it decreased by 2.4%. For the 2nd consecutive week, all 4 of the highest-capitalization MCCCI stocks decreased, which is a growing concern going forward.

Recap

The relative strength index decreased by 14.3% compared to the prior week when it decreased by 8.1%. This is yet another troubling metric regarding the entire sector. Let us see how this volatile sector has performed at the same time next week shall we?