Chart Of The Week: The IRS Grabbed The Cannabis Stock Market's Attention
Portfolio Pulse from Viridian Capital Advisors
Cannabis stocks experienced significant declines on June 28, 2024, due to an IRS filing reminding taxpayers that marijuana remains a Schedule I controlled substance and is subject to tax limitations. Companies with high excess tax liabilities, such as Jushi and AYR, saw the largest stock declines, while those with minimal liabilities, like Green Thumb and Glass House Brands, experienced smaller declines.
July 01, 2024 | 3:52 pm
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NEUTRAL IMPACT
Glass House Brands' stock experienced a smaller decline due to its minimal excess tax liabilities.
Glass House Brands' minimal excess tax liabilities protected it from significant stock declines following the IRS filing.
CONFIDENCE 100
IMPORTANCE 70
RELEVANCE 100
NEUTRAL IMPACT
Green Thumb's stock experienced a smaller decline due to its minimal excess tax liabilities.
Green Thumb's minimal excess tax liabilities shielded it from significant stock declines despite the IRS filing.
CONFIDENCE 100
IMPORTANCE 70
RELEVANCE 100
NEGATIVE IMPACT
AYR's stock declined due to its excess tax liabilities, which represent 43% of its market cap and 0.74x its 2024 EBITDA.
AYR's excess tax liabilities make it susceptible to IRS actions, contributing to a decline in its stock price.
CONFIDENCE 100
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
Jushi's stock declined by 15.6% due to its high excess tax liabilities, which represent 98% of its market cap and 1.94x its 2024 EBITDA.
Jushi's significant excess tax liabilities make it highly vulnerable to IRS actions, leading to a sharp decline in its stock price.
CONFIDENCE 100
IMPORTANCE 90
RELEVANCE 100