Image Source: UnsplashFor the trading week ended January 3, 2025 my proprietary Canadian Cannabis Company Index (MCCCI) increased by 4.5% compared to the prior week when it was unchanged. 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 no stocks that increased by more than 10%, which is my metric for inclusion in this category.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 3.9% increase in the “Big 4” (all of which increased) compared to the prior week when there was no change. The stock-price-based metric increased by 1.2% compared to the prior week when it was unchanged.RecapThere was a 20.0% increase in the relative strength index compared to the prior week when there was an 8.7% increase. 8 of the 14 MCCCI stocks increased. Auxly Cannabis Group (CBWTF) continues to be an outlier, as it demonstrated price stability in 2024. Based on recent improving metrics, I am revising the MCCCI to DEFCON 2. Let us see how this volatile sector has performed at the same time next week, shall we?Author’s Note: Apologies for the late submission which is because I was recently diagnosed as having COVID-19. (again)More By This Author:The Canadian Cannabis Report – Monday, Dec 30
The Canadian Cannabis Report – Monday Dec 23
The Canadian Cannabis Report – Monday, Nov 25
