For the trading week that ended March 15, 2024, my proprietary Canadian Cannabis Company Index (MCCCI) was unchanged compared to the prior week when it decreased 6.7%. 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 was 1 stock that increased by more than 10%, which is my metric for inclusion in this category: TSNDF +10.1%. TerrAscend Corp. is a “Big 4” stock and was the biggest winner in the MCCCI. On 3/14/24 the company reported GAAP revenue and earnings misses for Q4 and full year ended 12/31/23. I intend to closely monitor how TSNDF trades going forward as a potential “stock to watch” as I have previously expressed reservations about this company.
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 8.1% increase in the “Big 4” (all of which increased) compared to the prior week when there was no change
Recap
There was a 5.3% decrease in the relative strength index compared to the prior week when was no change. My current thesis for the Canadian cannabis sector is still a work in progress. Specifics will be announced at the end of Q1 trading. 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, March 4
The Canadian Cannabis Report – Monday, Feb. 26
The Canadian Cannabis Report – Monday, Feb. 19
