For the trading week that ended September 30, my proprietary Canadian Cannabis Company Index (MCCCI) increased by a de minimis 0.05% compared to the prior week when it decreased by 11.8%. 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.
 

Image by Herbal Hemp from Pixabay

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?


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 no stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category.

The Ugly

There were no stocks that decreased by 20% or more, which is my metric for inclusion in this category.

Valuation Metric Review

There was an increase of 2.3% in the “Big Four” compared to the prior week when there was a decrease of 12.6%. Q4 came in like a lamb indeed given that there were no good, bad or ugly stocks- a rarified week to be sure.

Recap

1 of the 22 stocks in the MCCCI increased, indicating ongoing sector weakness. There was an increase of 7.4% in the relative strength index compared to the prior week when there was a decrease of 13.0%. Although all 3 metrics showed improvement, I simply see no evidence of sector strength on the horizon. Let us see how this volatile sector has performed at the same time next week.

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The Canadian Cannabis Report - Monday, Sept. 26
Canadian Cannabis Report - Monday, Sept. 19
The Canadian Cannabis Report - Monday, Sept. 12