An Introduction

After moving to federally reclassify cannabis as a Schedule III drug under the Controlled Substances Act (CSA) back in March, the Department of Justice (DOJ) opened a 60-day public comment period that saw more than 40,000 submissions. Now that the Drug Enforcement Administration (DEA) has reviewed the comments, it announced after the markets closed yesterday that it has scheduled an administrative hearing, as requested by several supporters and opponents of the reform, for December 2nd to consider differing expert opinions on the Justice Department’s proposal.

Prior to the markets opening yesterday morning Marijuana Morning had this to say (paraphrased) in their newsletter: "We’re probably in for a bit of a market nosedive today, with some folks jumping to the conclusion that this is a total train wreck. While this is a minority view you can bet there’ll still be the usual knee-jerk reactions, but here's the kicker: fundamentally, nothing has really changed. The only thing that’s been cleared up is the uncertainty around when we might finally get a ruling and, even if cannabis does get bumped to Schedule III, it won't be a free pass—federal criminal prohibitions and the FDCA will still loom large." Source

Marijuana Moment got it 100% right! Had you been subscribed to their newsletter like me, you would have been in the know and avoided the bloodbath that has unfolded in the past two days.

The American Cannabis MSO Portfolio

Here's what has happened in the past two days to the 7 constituents in the American Cannabis MSO Portfolio, in ascending order:

1. Ayr Wellness (AYRWF): DOWN 19.4%
2. TerrAscend (TSNDF): DOWN 17.2%
3. Verano (VRNOF): DOWN 15.8%
4. Cresco Labs (CRLBF): DOWN 14.9%
5. Curaleaf (CURLF): DOWN 13.5%
6. Green Thumb (GTBIF): DOWN 12.3%
7. Trulieve Cannabis (TCNNF): DOWN 10.9%

Summary

The American Cannabis MSO Portfolio is DOWN 13.2% in the past 2 days and is now DOWN 18.4% MTD (and DOWN 5.9% YTD).

The Canadian Cannabis LP Portfolio

The Canadian Cannabis LP Portfolio was also hard hit but less so than the American Cannabis MSO Portfolio. Here's what happened in the past 2 days to the  Portfolio's 5 constituents, in ascending order:

1. Canopy Growth (CGC): DOWN 14.1%
2. Aurora Cannabis (ACB): DOWN 8.7%
3. Tilray Brands (TLRY): DOWN 8.6%
4. Organigram (OGI): DOWN 7.5%
5. Cronos Group (CRON): DOWN 6.5%

Summary

The Canadian Cannabis LP Portfolio is DOWN 10.1% in the past 2 days and is now DOWN 15.2% MTD (but is still UP 7.4% YTD).

More By This Author:

Our AI-Focused Drug Discovery Stocks Portfolio Was Up Almost 7% Last Week
Our American Cannabis MSO Portfolio Was Down 6% Last Week
Our Canadian Cannabis LP Portfolio Was Down 7% Last Week