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For the trading week that ended November 10, 2023, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 3.9% compared to the prior week when it increased by 18.8%. 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 Good There were no stocks that increased by more than 10%, which is my metric for inclusion in this category
The Bad There were 2 stocks that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: CGC -18.0% and TLRY -13.9%.
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 6.8% decrease in the “Big Four” (3 of which decreased) compared to the prior week when there was a 13.2% increase. This decrease may signal a reversion to the mean as we approach the midpoint of Q4. Canopy Growth Corporation was a “good” stock in the prior week, but as I have said repeatedly I am unconvinced of and sustained bullish sentiment. For most of all of 2024, my private clients have thrived trading CGC options and the stock is down 77.0% YTD.
Recap There was a 14.3% increase in the relative strength index compared to the prior week when there was a 9.4% increase. 4 of the 14 MCCCI stocks increased, 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. 6
The Canadian Cannabis Report – Monday, Oct. 30
The Cannabis Report- Monday, Oct. 23
