Photo by Kimzy Nanney on Unsplash For the trading week that ended November 24, 2023, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 6.0% compared to the prior week when it increased by 2.0%. The index consists of 14 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?
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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 1 stock that decreased by 20% or more, which is my metric for inclusion in this category: NEPT -20.2%. Neptune Wellness Solutions Inc. had rallied recently after they entered into a non-binding LOI to acquire Datasys Group, Inc. but this price spike was short-lived.
Valuation Metric Review
There was a 6.5% decrease in the “Big Four” (3 of which decreased) compared to the prior week when there was a 5.4% increase. Canopy Growth Corporation was the outlier of the group and gained a mere 1.9%. In my view, there is mounting evidence the MCCCI is likely to continue to be under pressure for the remainder of 2023.
Recap
There was a no change in the relative strength index compared to the prior week when there was a 10.0% decrease. 2 of the 14 MCCCI stocks increased, both marginally. Let us see how this volatile sector has performed at the same time next week, shall we?More By This Author:The Canadian Cannabis Report – Monday, Nov. 13
The Canadian Cannabis Report – Monday, Nov. 6
The Canadian Cannabis Report – Monday, Oct. 30
