The rallies, followed by steep sell-offs, for cannabis stocks continued. The industry has an ongoing wait to win the U.S. administration’s views on the product.
Last Tuesday, August 27, 2024, the Drug Enforcement Administration (“DEA”) scheduled a hearing for Dec. 2 to consider different views on the U.S. Justice Department’s proposal to classify marijuana as a less dangerous drug.
Cannabis investors may consider Acreage Holdings (ACRHF), Cresco Labs (CRLBF), Trulieve Cannabis (TCNNF), and Curaleaf Holdings (CURLF). In Canada, such decisions have an impact on shares of Cronos (CRON), Aurora Cannabis (ACB), and Canopy Growth (CGC).
Readers may consider the MSOS ETF, which represents U.S. multi-state operators.
The Dec. 2 hearing is after the U.S. Presidential election. Unfortunately, none of the candidates are willing to comment on the cannabis re-classification.
Public commentary in the mid-90 % indicated positive support for cannabis.
Investors need to exercise caution in the MSO space. Until the government issues clear laws about it, the marijuana industry is not investible. In these market conditions, traders may benefit the most. They may short-sell the sector when selling momentum increases. Then they may buy MSO stocks when it looks like the government will issue a positive opinion and eventual ruling.
