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Thursday’s double-digit percentage point increases in the stock prices of most US multi-state operators and Canadian licensed producers are now in the rear-view mirror as cannabis companies are mostly down Friday.
Marijuana stocks spiked on Thursday after US President Joe Biden asked HHS and the US Department of Justice to review the federal law that has assigned cannabis as a Schedule I substance. Biden’s request is seen as a step toward marijuana legalization on the federal level.
The hardest hit cannabis stocks today are Acreage Holdings (OTCQX:ACRHF) (-21%); Canopy Growth (NASDAQ:CGC) (-20%); and Tilray Brands (-18%).
Trulieve Cannabis (OTCQX:TCNNF) is one notable bright spot today as it is up 7%. The stock closed up 36% on Thursday.
Street analysts largely view Biden’s request as favorable. MKM Partners’ Bill Kirk said that at least in the immediate timeframe, shorting the cannabis sector will be difficult. “SAFE Banking and re-scheduling would be enough to increase investment interest in the sector by an order of magnitude,” he added, referring to marijuana banking legislation.
BofA Securities’ Lisa Lewandowski noted that Biden’s announcement “may eventually lead to changes in banking and tax laws for [cannabis] businesses…interstate commerce and the ability for additional investors to invest (who were prevented since it was federally illegal).
Multi-state operators: Cresco Labs (OTCQX:CRLBF); Columbia Care (OTCQX:CCHWF); Green Thumb Industries (OTCQX:GTBIF); Curaleaf Holdings (OTCPK:CURLF); MedMen Enterprises (OTCQB:MMNFF); Ayr Wellness (OTCQX:AYRWF); Verano Holdings (OTCQX:VRNOF); and Jushi Holdings (OTCQX:JUSHF).
Canadian licensed producers: Aurora Cannabis (NASDAQ:ACB), HEXO Corp. (NASDAQ:HEXO), and TerrAscend (OTCQX:TRSSF).
Cannabis-related ETFs: AdvisorShares Pure Cannabis ETF (YOLO), Amplify Seymour Cannabis ETF (CNBS), ETFMG Alternative Harvest ETF (MJ), AdvisorShares Pure US Cannabis ETF (MSOS), and Global X Cannabis ETF (POTX).
