Cannabis Chart Of The Week: Are Ancillary Sectors Participating In The Rescheduling Price Upswing?
Portfolio Pulse from Viridian Capital Advisors
The article discusses the performance of various cannabis industry subsectors following the HHS announcement on rescheduling. It highlights the stock price movements of ag-tech, cannabis lenders, hemp, and software/media sectors, mentioning specific companies like Scotts Miracle Grow, GrowGeneration, Hydrofarm, Urban Gro, IIPR, NewLake, Chicago Atlantic, AFC Gamma, Silver Spike, and Leafly. The article suggests that while plant-touching stocks have seen significant gains, ancillary sectors like lenders, ag-tech, and software/media offer attractive investment opportunities with less risk.
May 20, 2024 | 3:51 pm
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POSITIVE IMPACT
AFC Gamma, a cannabis lender, is expected to benefit from improved credit quality of borrowers and increased demand for debt due to rescheduling.
Rescheduling will improve the credit quality of borrowers and increase demand for debt, benefiting cannabis lenders like AFC Gamma.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
GrowGeneration, part of the ag-tech sector, is expected to benefit from increased capital spending and expansion of cultivation capacity due to rescheduling.
Rescheduling is likely to boost capital spending in the ag-tech sector, benefiting companies like GrowGeneration.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Hydrofarm, part of the ag-tech sector, is expected to benefit from increased capital spending and expansion of cultivation capacity due to rescheduling.
Rescheduling is likely to boost capital spending in the ag-tech sector, benefiting companies like Hydrofarm.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
IIPR, a cannabis lender, is expected to benefit from improved credit quality of borrowers and increased demand for debt due to rescheduling.
Rescheduling will improve the credit quality of borrowers and increase demand for debt, benefiting cannabis lenders like IIPR.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Leafly, part of the software/media sector, has underperformed but could benefit from increased spending by plant-touching businesses post-rescheduling.
Rescheduling may lead to increased spending by plant-touching businesses, benefiting software/media companies like Leafly.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
NewLake, a cannabis lender, is expected to benefit from improved credit quality of borrowers and increased demand for debt due to rescheduling.
Rescheduling will improve the credit quality of borrowers and increase demand for debt, benefiting cannabis lenders like NewLake.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Chicago Atlantic, a cannabis lender, is expected to benefit from improved credit quality of borrowers and increased demand for debt due to rescheduling.
Rescheduling will improve the credit quality of borrowers and increase demand for debt, benefiting cannabis lenders like Chicago Atlantic.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Scotts Miracle Grow, part of the ag-tech sector, is expected to benefit from increased capital spending and expansion of cultivation capacity due to rescheduling.
Rescheduling is likely to boost capital spending in the ag-tech sector, benefiting companies like Scotts Miracle Grow.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Silver Spike, a cannabis lender, is expected to benefit from improved credit quality of borrowers and increased demand for debt due to rescheduling.
Rescheduling will improve the credit quality of borrowers and increase demand for debt, benefiting cannabis lenders like Silver Spike.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
POSITIVE IMPACT
Urban Gro, part of the ag-tech sector, is expected to benefit from increased capital spending and expansion of cultivation capacity due to rescheduling.
Rescheduling is likely to boost capital spending in the ag-tech sector, benefiting companies like Urban Gro.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80