For the trading week that ended December 15, 2023, my proprietary Canadian Cannabis Company Index (MCCCI) decreased by 7.2% compared to the prior week when it increased by 4.2%. 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?
Image Source: PixabayThe 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 was 1 stock that decreased by 20% or more, which is my metric for inclusion in this category: CGC -32.6%. Canopy Growth Corporation was a “good” stock last week. On 12/13/23 the company announced a 1 for 10 reverse split in order to regain compliance with Nasdaq listing rules. I have sent an alert to my private clients regarding my view on how this may affect how the stock will trade going forward.Valuation Metric ReviewThere was a 7.1% decrease in the “Big Four” (3 of which decreased) compared to the prior week when there was a 3.6% increase. As cited above, CGC was (by far) the biggest loser of the group which acquitted my view regarding this volatile stock in the prior report.RecapThere was no change in the relative strength index compared to the prior week when there was a 7.3% decrease. 2 of the 14 MCCCI stocks increased, both of which (TLRY and OGI) are among the 6 highest capitalization stocks in the MCCCI. 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, Dec. 11
The Canadian Cannabis Report – Monday, Dec. 4
The Canadian Cannabis Report – Monday, Nov. 27
