Image Source: PixabayFor the trading week that ended Aril 5, 2024, my proprietary Canadian Cannabis Company Index (MCCCI) increased 9.2%. 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?The GoodThere were 2 stocks that increased by more than 10%, which is my metric for inclusion in this category: ACB +30.2% and CGC +11.7%. In my view, the recent surge in Aurora Cannabis Inc. stock is largely attributable to the bull thesis that there will be favorable legislation forthcoming regarding the cannabis sector. I will opine my thoughts on the raging bull/bear tug of war in next week’s report.The BadThere were no stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category:The UglyThere were no stocks that decreased by 20% or more, which is my metric for inclusion in this category.Valuation Metric ReviewThere was a 7.1% increase in the “Big 4” (all of which increased). As noted above, Canopy Growth Corporation was the biggest gainer of this critical cohort.RecapThere was a 16.4% increase in the relative strength index. The continuing sea change in all 3 metrics is historic for the MCCCI but I am not convinced that it is sustainable. I will soon elaborate on my reasons for my viewpoint after I am able to drill down on Q1 results. Let us see how this volatile sector has performed at the same time next week, shall we?Author’s Note: There was no report for the week ended 3/29/24 and hence comparative metrics are not presented for the week ended 4/5/24.More By This Author:The Canadian Cannabis Report – Monday, March 25
The Canadian Cannabis Report – Monday, March 18
The Canadian Cannabis Report – Monday, March 11
