Image Source: PixabayFor the trading week ended April 19, 2024, my proprietary Canadian Cannabis Company Index (MCCCI) decreased 4.0% compared to the prior week when it decreased 16.8%. 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 was 1 stock that decreased by more than 10% (but less than 20%) which is my metric for inclusion in this category: DLTNF -17.5%. Delta 9 Cannabis Inc. was an “ugly” stock. in the prior week and has a minuscule market capitalization of $5.0M. This $0.02 stock is a prime candidate not to be around by the end of 2024.
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 a 4.2 % decrease in the “Big 4” (3 of which decreased) compared to the prior week when there was a 11.1% increase. Canopy Growth Corporation (CGC) was the lone gainer in the cohort and increased a mere 2.1%, illustrating general market malaise.
Recap
There was a 4.1% decrease in the relative strength index compared to the prior week when there was a 2.8% increase. MediPharm Labs Corp. (MEDIF) was the “biggest gainer” in the MCCCI and increased 4.3%. 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, April 15
The Canadian Cannabis Report – Monday, April 8
The Canadian Cannabis Report – Monday, March 25
