DEA Moves To Reschedule Weed, Cannabis Stocks Go For Wild Ride, Pummel Short Sellers With $210M In Losses
Portfolio Pulse from Maureen Meehan
Cannabis stocks surged following the DEA's announcement to consider rescheduling marijuana from Schedule I to Schedule III, potentially allowing cannabis companies significant tax deductions. Green Thumb Industries, Verano Holdings, and Cresco Labs could see bottom-line boosts of $70M-$100M. Short sellers faced $210M in losses as stocks like Tilray Brands and Canopy Growth Corporation saw dramatic increases. The move is seen as revitalizing the cannabis industry, with potential for U.S. exchange listings to significantly increase market values.
May 01, 2024 | 4:23 pm
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POSITIVE IMPACT
Canopy Growth Corporation led the gains among cannabis stocks with a 78.8% increase to $14.88 per share after the DEA's announcement, showcasing significant market enthusiasm.
Canopy Growth's dramatic stock price increase is a direct response to the DEA's potential rescheduling of marijuana, highlighting the market's positive outlook on its impact.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 95
POSITIVE IMPACT
Cresco Labs could enhance its bottom line by $70M-$100M following the DEA's announcement to consider rescheduling marijuana, positively affecting its fiscal health.
The potential rescheduling of marijuana by the DEA offers Cresco Labs a chance to reduce tax expenses and improve profitability.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Green Thumb Industries could see a bottom-line boost of $70M-$100M due to the DEA's rescheduling of marijuana, significantly improving its financial outlook.
The DEA's move to reschedule marijuana directly impacts Green Thumb Industries by potentially reducing tax burdens and increasing profitability.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90
POSITIVE IMPACT
Tilray Brands Inc. experienced a 40% stock price jump following the DEA's rescheduling news, indicating a strong positive market reaction.
The sharp increase in Tilray's stock price directly results from the DEA's announcement, reflecting investor optimism about its future profitability.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 95
POSITIVE IMPACT
Verano Holdings stands to benefit from the DEA's potential rescheduling of marijuana, with a projected bottom-line increase of $70M-$100M.
The DEA's announcement could lead to substantial tax savings for Verano Holdings, directly enhancing its financial performance.
CONFIDENCE 80
IMPORTANCE 85
RELEVANCE 90