Image Source: Unsplash

Introduction

"Congress is once again proving that cannabis reform is never a straight line. The House Appropriations Committee, led by Republicans, has advanced its annual spending bill covering the Commerce, Justice, Science (CJS) agencies, and tucked inside is a provision that would block the Justice Department from rescheduling or de-scheduling marijuana. Yes, you read that right: The provision bluntly states that no federal funds can be used to change marijuana’s status under the Controlled Substances Act. This isn’t the first time we’ve seen such language in CJS appropriations, but it’s notable given that President Trump has promised a decision on rescheduling “within weeks.”  Source

The Collapse Continues

Back on August 11th Trump said that his administration was “looking at” moving cannabis from Schedule I to Schedule III and would “make a determination over the next few weeks”. That caused the largest cannabis MSOs to rocket higher in August (see here) by 96% but the rocket ran out of the fuel that propelled it upwards - DEA re-scheduling and SAFE Banking legislation optimism -  the following week (w/e Sept. 5th) and going down by 12.4% as a result of no action by the administration. Then, this week. the House Appropriations Committee completed the collapse with a further 10.3% decline of the 6 largest cannabis MSOs stocks.

American Cannabis MSO Stocks Portfolio

The 6 stocks are tracked in our American Cannabis MSO Stocks Portfolio and are presented below in ascending order along their performances MTD and a chart showing how the Portfolio has performed over various time periods:

1. Cresco (CRLBF):  DOWN 18.2% w/e September 12th; DOWN 34.4% MTD
2. Verano (VRNOF): DOWN 17.0% w/e September 12th; DOWN 34.1% MTD
3. Curaleaf (CURLF):  DOWN 15.4% w/e September 12th; DOWN 27.0% MTD
4. Green Thumb (GTBIF):  DOWN 9.4% w/e September 12th; DOWN 14.7% MTD
5. TerrAscend (TSNDF): DOWN 8.0% w/e September 12th; DOWN 30.4% MTD
6. Trulieve (TCNNF):  DOWN 7.1% w/e September 12th; DOWN 20.2% MTD

Summary 

The above stocks were DOWN 10.3%, on average, this week and is now DOWN 21.5% MTD

Portfolio Performance Chart

(Click on image to enlarge)

The above portfolio chart has been generated using the tools provided by PortfoliosLab.com and easy step-by-step instructions are available here to help you create a chart of your own portfolio or that of a client. It's easy, fast and free.