Cannabis stocks rallied for the second straight session on Thursday after a letter was reportedly leaked to Bloomberg on Wednesday that The U.S Department of Health and Human Services (HHS) recommended the Drug Enforcement Administration (DEA) reclassify cannabis from Schedule I to Schedule III under federal law. That was some leak.
If it was leaked, it would be the most bullish set-up possible given the holiday-thinned ranks into the last few days of August. There was zero warning for the abundance of bears caught short, pressing the most recent technical failure. No head’s up for any interested longs, most of whom were in wait-and-see mode heading into September.
"We believe that rescheduling to Schedule III will mark the most significant federal cannabis reform in modern history," said Ed Conklin of the U.S. Cannabis Council. "President Biden effectively declared an end to Nixon's failed war on cannabis and placed the nation on a trajectory to end prohibition."
“This is potentially the best-case scenario for advancing U.S. cannabis reform for the U.S. MSOs,” said Andrew Semple at Echelon. He reminded investors that his “current price targets don’t assume any federal cannabis reform,” and that “there’s ample room for further price appreciation.”
We would agree. U.S canna ETF MSOS (NYSE: MSOS) traded $15 in December on the mere specter that SAFE Banking would pass. Schedule III, while not the ultimate destination that we want to see, is entirely more powerful than SAFE Banking could ever be. What’s more, they’re not mutually exclusive; in fact, this amps the pressure on Sen. Schumer.
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In today’s column, we’ll take a trip around the world to gauge the insights, reactions and perspectives surrounding this historic move. 99.99% of the US population doesn’t understand the implications of this recommended rescheduling and they surely don’t know what IRC Sec. 280E is or why US Canna balance sheets + sentiment just inflected.
Lot’s more, too; just keep scrolling…
SPY 0.25%↑ QQQ 0.17%↑ IWM 0.99%↑ MSOS 6.22%↑
PT Notional: $283M (15X recent average)
Top Stories
- Biden Administration Calls on DEA to Move Marijuana to Schedule III
- U.S. health agency advises easing federal marijuana restrictions in historic move
- <a href="https://businessofcannabis.com/stocks-rally-following-leaked-cannabis-rescheduling-letter/" …