US Cannabis Stocks Surge By 69%: Water Tower Research Report Breaks Down Top Performers
Portfolio Pulse from Nicolás Jose Rodriguez
US cannabis stocks have surged by 69% following hints from the HHS about potential reclassification of marijuana. Ascend Wellness (AAWH) led with a 25.44% increase, while MariMed (MRMD) and Gold Flora (GRAM) also saw significant gains. The Cannabist (CBSTF) experienced a slight decline. The HHS's unredacted document recommended reclassifying cannabis to Schedule III, which has sparked media attention and discussions on platforms like Reddit, particularly for Tilray (TLRY). The report suggests political progress on cannabis reform could further boost the industry, which currently has low institutional ownership.
January 24, 2024 | 6:12 pm
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POSITIVE IMPACT
Ascend Wellness saw a 25.44% surge in stock price, leading the cannabis industry's gains.
Ascend Wellness's significant surge is directly attributed to the optimistic outlook on cannabis reclassification, which could reduce regulatory burdens and taxes for the company.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Gold Flora's stock price skyrocketed by 67.17% this week, with a strong year-to-date increase of 83.89%.
Gold Flora's dramatic increase is likely a direct result of the HHS's recommendation for cannabis reclassification, which could significantly benefit the company.
CONFIDENCE 85
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
MariMed gained 12.14%, reflecting positive investor sentiment in the cannabis sector.
MariMed's gain is part of the broader market rally in cannabis stocks, likely influenced by the same regulatory optimism that has boosted the sector.
CONFIDENCE 80
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Tilray has gained popularity and media attention, becoming one of the top discussed topics on Reddit's Wall Street Bets subreddit.
Tilray's increased media attention and discussion on social media platforms could lead to higher investor interest and a potential short-term increase in stock price.
CONFIDENCE 80
IMPORTANCE 75
RELEVANCE 85
NEGATIVE IMPACT
The Cannabist saw a weekly dip of 12.53% but maintains a 17.65% year-to-date gain.
Despite the overall market surge, The Cannabist's dip could be due to company-specific factors or market corrections, but it still shows a positive year-to-date performance.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 70