You’re reading this year’s version of the New Cannabis Ventures fortnightly newsletter, which we have been publishing since October 2015. The magazine includes links to the week’s most significant news as well as some unique insights to help our readers keep on top of the market. We no longer internet these as we did in the past, but we still blog them and every other newsletter on our site.
Friends,
Near the end of 2022, I became cautious with cannabis companies. They are basically lower then, according to the New Cannabis Ventures Global Cannabis Stock Index. More lately, I have been gradually becoming more cheerful.
Since the beginning of the 20th century, we have been in a bear market, with prices down over 90 % since the peak. As I have been pointing out, the table looks like it may be bottoming. That, though, is n’t enough! The great motivator that is playing over is rescheduling. No one seemed to believe that President Biden did accomplish this task, as President Biden claimed he would do in late 2022. The Department of Health & Human Services advised the DEA to switch hemp from Schedule 1 to Schedule 3 in August 2023. The industry grew really excited, but when shareholders realized that the DEA might never follow through on their expectations, it retreated. Also, April 30th, the DEA did state that it was going to do just that, and the market exploded higher.
280E, an arduous tax applied to British cannabis firms, will go away if the DEA delivers on its planned postponement, and this will raise money flows for them. Given that the business has limited access to capital, I believe this could be a true motivator. In my opinion, this may benefit the businesses that give them goods or services. Some of the secondary companies are really appealing to me!
Income season begins this week and actually picks up the week after that. The quarterly financials are unlikely to pique consumers ‘ interest. I think that Tilray Brands ( NASDAQ: TLRY ) could really disappoint on Monday. The investment is very expensive. It is down year-to-date, but may drop to a new all-time small. It has been very extreme with M&, A, which has given the impression that it is expanding, but researchers have been cutting down on their perspectives for adjusted EBITDA. The major MSOs release their results the next week, but their growth is quite modest.
I think that beyond postponing, there are some good things happening. We will see some other states transition from medical-only to adult-use, as I mentioned two weeks ago ( Ohio is in the process, and Virginia may do the same ). Florida’s vote on it might come in November, and Pennsylvania had become another position with the potential to legalize adult-use.
I am not calling this a bull market, because it does n’t feel like one yet. There have n’t been any obvious level falls to the face, and the quantities are still relatively low. I’ve been asking viewers to pay close attention, and things are progressing favorably, minus the price. We have had a difficult week for stocks, and I made the suggestion last week that a weak stock market may not probably hold up the cannabis industry. The S&, P 500 has dropped 1.9 %, while the Global Cannabis Stock Index has decreased just a little since last Wednesday ( 2.1 % as of typing with the index at 8.95 ). The Global Cannabis Stock Index increased by more than 10 % year over year in July, and it is up year over year. It was, in my opinion, increase significantly. What has happened in 2024 but much?
But, I believe we are on the verge of a new bull market, even though I’m not yet sure what it means. If postponement fails to go through, it will be very unpleasant. The perception is that the majority has given up on cannabis securities.
Special reports and carefully selected reports are published by New Cannabis Ventures. Some of the most significant information from this month can be found here:
Exclusives
Sales Rise of Canadian Cannabis Has Slowened
Cannabis Q2 Profits Season Approaches
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Sincerely,
Alan
