Name: Cannabis Stocks Rise as DOJ Moves to Reclassify Marijuana as a Less Dangerous Drug
Brand: investing.com
SKU: investing-com-33
Availability: OnlineOnly

critic

Cannabis Stocks Rise as DOJ Moves to Reclassify Marijuana as a Less Dangerous Drug

preview

Cannabis stocks surged on Tuesday after the U.S. Department of Justice (DOJ) moved to reclassify marijuana as a less dangerous drug.
U.S.-listed pot stocks Tilray (TSX: TLRY) (NASDAQ: ), Canopy Growth (TSX: WEED) (NASDAQ: ) and Cronos Group (TSX: CRON) (NASDAQ: ) rose between 14.9% and 67.7%, while AdvisorShares Pure U.S. Cannabis ETF (NYSEArca: MSOS) soared 24.8%.
Canadian-listed U.S. multi-state operators (MSOs) Trulieve (CSE: TRUL) (OTCQX: TCNNF) and Green Thumb Industries (CSE: GTII) (OTCQX: GTBIF) were also up 26.6% and 37.3%, respectively.
Cannabis firms are taxed under section 280E as a part of Schedule I drug, which disallows them from deducting normal business expenses from their profit, increasing the tax burden for the companies. Reclassifying to Schedule III would eliminate this tax, helping towards their profitability.
Also Read: Capitalize on Rising Crypto Market With These Blockchain Stocks
In a research note, Alliance Global Partners (NYSE: GLP) analyst Aaron Grey wrote:
“This would result in meaningful cash benefits for operators and we estimate a cash benefit upwards of $150 mln.”
The proposal, which, if finalized, could potentially be the most significant shift in federal cannabis policy in 40 years, is being sent to the White House Office of Management and Budget for review and to finalize the rule-making process, sources told Reuters.
The reclassification will not legalize cannabis outright for recreational use.
Cannabis stocks experienced their largest bull run in 2018 after Canada legalized recreational marijuana use. However, the trend reversed the following year as underwhelming revenue numbers failed to justify the sky-high valuations.
This article was originally published on Reuters.com.
Join the Discussion in the WVC Facebook Investor Group
Have a Stock Tip or New&nbsp; Story Suggestion? Email us at Invest@WealthyVC.com
Disclaimer: Wealthy VC does not hold a long or short position in any of the stocks, ETFs or cryptocurrencies mentioned in this article.

Cannabis stocks surged on Tuesday after the U.S. Department of Justice (DOJ) moved to reclassify marijuana as a less dangerous drug.
U.S.-listed pot stocks Tilray (TSX: TLRY) (NASDAQ: ), Canopy Growth (TSX: WEED) (NASDAQ: ) and Cronos Group (TSX: CRON) (NASDAQ: ) rose between 14.9% and 67.7%, while AdvisorShares Pure U.S. Cannabis ETF (NYSEArca: MSOS) soared 24.8%.
Canadian-listed U.S. multi-state operators (MSOs) Trulieve (CSE: TRUL) (OTCQX: TCNNF) and Green Thumb Industries (CSE: GTII) (OTCQX: GTBIF) were also up 26.6% and 37.3%, respectively.
Cannabis firms are taxed under section 280E...

public

Reuters

investing.com

Credible

Speculation

Anecdotal Evidence

Generalization

Stacking the Deck

Appeal to Authority

Straw Man

Slippery Slope

Emotional Appeal

Red Herring

False Dilemma

Illogical

Moral Equivalency

Ad Hominem

Correlation w/o Causation

Semantics

Begging the Question

Faulty Analogy

Non Sequitur

Bandwagon

Dogmatism

Failing Occam's Razor

Biased

Pure Opinion

Hit Piece

Racial Bias

National Bias

Religious Bias

Financial Incentive

Political Agenda

Gender Bias

Misused Image/Video

Study Misinterpreted

Mistake

Misused Term

Science Misrepresented

Factual Error

Satire

Surface Level

Lack of Reliable Sources

Sensational

Not Credible

Investigative

Balanced

Well Sourced

Great Context

sports

entertainment

U.S.

international

business

technology

science

culture

politics

media

health

Cannabis Stocks Rise as DOJ Moves to Reclassify Marijuana as a Less Dangerous Drug

No article scores yet.

CRITIC REVIEWS

PUBLIC REVIEWS