6 Largest Cannabis MSOs Dropped By 6.9%, On Average, On Tuesday, July 29th - Here's Why
Introduction
Cannabis MSOs (Multi-State Operators) saw a sharp sell-off on July 29th largely due to a delay in federal cannabis rescheduling by the DEA, which dashed investor hopes for near-term reform and reinforced fears that federal reform may not happen until 2026 or later, causing a wave of selling across the sector.
Company-Specific Catalysts & Performances On July 29th
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 are highlighted below as to their performances today, in ascending order, and the specific catalysts for their declines:
- Cresco Labs (CRLBF): DOWN 10.4% July 29th
- Catalyst: Cresco remains fully dependent on the fragmented U.S. market so the delay in federal cannabis rescheduling by the DEA amplifying its vulnerability.
- Catalyst: Cresco remains fully dependent on the fragmented U.S. market so the delay in federal cannabis rescheduling by the DEA amplifying its vulnerability.
- Verano Holdings (VRNOF): DOWN 8.9% July 29th
- Catalyst: Verano was hit especially hard by the delay in federal cannabis rescheduling by the DEA crushing investor hopes for near-term reform as it's a U.S.-focused MSO with no international buffer.
- Catalyst: Verano was hit especially hard by the delay in federal cannabis rescheduling by the DEA crushing investor hopes for near-term reform as it's a U.S.-focused MSO with no international buffer.
- Trulieve Cannabis (TCNNF): DOWN 7.6% July 29th
- Catalyst: Trulieve’s extremely high debt-to-equity ratio and very high negative net income raised red flags about its financial resilience without near-term federal tax relief.
- Catalyst: Trulieve’s extremely high debt-to-equity ratio and very high negative net income raised red flags about its financial resilience without near-term federal tax relief.
- Curaleaf Holdings (CURLF): DOWN 5.6% July 29th
- Catalyst: The failure of the DEA to provide a timeline for cannabis rescheduling was a major blow to Curaleaf, which had positioned itself to benefit from federal changes.
- Catalyst: The failure of the DEA to provide a timeline for cannabis rescheduling was a major blow to Curaleaf, which had positioned itself to benefit from federal changes.
- Green Thumb Industries (GTBIF): DOWN 4.5% July 29th:
- Catalyst: Unlike some peers expanding into Europe or Australia, Green Thumb remains fully exposed to the fragmented U.S. and, as such, investors reacted negatively to the delay in the federal cannabis rescheduling by the DEA.
- Catalyst: Unlike some peers expanding into Europe or Australia, Green Thumb remains fully exposed to the fragmented U.S. and, as such, investors reacted negatively to the delay in the federal cannabis rescheduling by the DEA.
- TerrAscend Corp. (TSNDF): DOWN 4.4% July 29th
- Catalyst: Q2 earnings are scheduled for August 7, and after missing Q1 expectations, investors may have sold ahead of potentially weak results in addition to the delay in the federal cannabis rescheduling by the DEA.
- Catalyst: Q2 earnings are scheduled for August 7, and after missing Q1 expectations, investors may have sold ahead of potentially weak results in addition to the delay in the federal cannabis rescheduling by the DEA.
Summary
Our American Cannabis MSO Stocks Portfolio dropped 6.9% today, July 29th.
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This article has been composed with the exclusive application of the human intelligence (HI) of the author. No artificial intelligence (AI) technology has been deployed.
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