Image Source: Unsplash

Introduction

I wrote two weeks ago in an article entitled "MSO Cannabis Stocks Continue To Buy The Rumor" (see here) that "MSO cannabis stocks have surged so far in July, in general, thanks to a potent mix of regulatory optimism and investor momentum." After an off week, that surge returned the week ending July 25th. 

General Market Catalysts

• Banking Reform Buzz: A group of 32 attorneys general sent a letter to Congress urging passage of the SAFER Banking Act, which would allow cannabis businesses access to traditional banking services. This raised hopes for reduced operational risk and better access to capital.
• Rescheduling Speculation: Renewed chatter about the DEA rescheduling marijuana from Schedule I to Schedule III - despite the process remaining stalled - continues to drive speculation.
• State-Level Momentum: States like Pennsylvania introduced bipartisan legalization bills, while New York, California, and Texas expanded their cannabis programs and these developments were seen to signal growing market opportunities for MSOs.

Company-Specific Catalysts & Performances w/e July 25th

In addition to the overall market catalysts, as mentioned above, the 6 largest cap, vertically integrated multi-state operator (MSOs) constituents in our American Cannabis MSO Stocks Portfolio have specific catalysts for their stock performances. They are ranked below for week-ending July 25th, in descending order, and the catalysts that contributed to their stock price changes:

1. Curaleaf Holdings (CURLF): up 42.6% w/e July 25th
   • Catalyst: Curaleaf surged on the hope that access to regulated banking - the ability to secure favorable financing terms under a post-reform framework - would free up capital for reinvestment and accelerate its path to profitability.
2. Cresco Labs (CRLBF): up 27.8% w/e July 25th
   • Catalyst: Cresco announced plans to divest its California operations, citing persistent challenges like illicit market competition, price compression, and fragmented retail. Investors saw this as a move to cut losses and refocus on profitable markets.
3. TerrAscend Corp. (TSNDF): up 22.2% w/e July 25th​​​​​​​
   • ​​​​​​​Catalyst: TerrAscend announced it would leave the Michigan market, which has been plagued by oversupply and price compression. Investors saw this as a smart move to focus on more profitable regions.
4. Trulieve Cannabis (TCNNF): up 18.3% w/e July 25th
   • ​​​​​​​​​​​​​​Catalyst: Trulieve debuted its THC-infused energy drink “Upward” under the Onward brand, targeting adult consumers seeking functional cannabis beverages. This move tapped into a fast-growing segment of the market.
5. Verano Holdings (VRNOF): up 10.9% w/e July 25th
   • ​​​​​​​​​​​​​​Catalyst: Verano revealed a deal with Grow Sciences, a top-tier Arizona cannabis operator, to bring premium products to Illinois. This signaled a push into high-margin offerings and excited investors about brand expansion.
6. Green Thumb Industries (GTBIF): up 8.5% w/e July 25th: 
   • ​​​​​​​Catalyst: GTBIF broke through key resistance levels around $5.90, triggering momentum buying. Analysts flagged a potential upside of 148% from its recent price, which attracted speculative interest.

Summary  

Our American Cannabis MSO Stocks Portfolio was up 15.9% w/e July 25th and is now up 30.1% MTD. That being said, however the Portfolio is still down 14.6% YTD.

Conclusion

Despite the rally, federal reform remains uncertain. The rescheduling process is still pending, and some congressional committees are actively trying to block it. Investors are riding the wave of optimism—but it’s still a “buy the rumor” environment.

More By This Author:

3 Of 8 Largest Integrated Semiconductor Manufacturers Crashed 11%, On Average, Yesterday - Here's Why
3 Of The 5 Stocks In Our AI-Focused Drug Discovery Portfolio Were Up Significantly Last Week - Here's Why
Cloud SaaS Computing Stock, MongoDB, Jumped 9% Last Week