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- 🚨Cannabis Stocks Dive Post-DEA Delay
🚨Cannabis Stocks Dive Post-DEA Delay
Markets take a hit, is this a buying opportunity?
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Good morning everyone! Nicolás RodrĂguez and Patricio Liddle writing today. The market took a beating yesterday after the DEA announced a delay in rescheduling until after the November election, sending stocks into a tailspin. Heavyweights like Curaleaf Holdings (OTC: CURLF), Trulieve (OTC: TCNNF) and Cresco Labs (OTC: CRLBF) saw sharp declines, while the AdvisorShares Pure US Cannabis ETF (ARCA: MSOS) plunged over 10%. Yet, amid the chaos, some see a potential buying opportunity.
Adding to the turbulence, Congresswoman Nancy Mace (R-SC) slammed the DNC for dragging its feet on cannabis reform, while the DEA reassured that it’s not targeting small-time users, despite federal laws. As investors weigh their options, the big question is whether now’s the time to buy—or brace for more bumps ahead.
The DEA's announcement of a delay in cannabis rescheduling until after the November election rattled the markets yesterday, leaving investors with more questions than answers.
Investors didn’t take the news lightly. The AdvisorShares Pure US Cannabis ETF (MSOS) plunged over 10%, setting the tone for a rough day in the cannabis sector. Heavyweights like Curaleaf Holdings (CURLF), Trulieve Cannabis (TCNNF) and Cresco Labs (CRLBF) saw declines of 15.68%, 10.36% and 13.89%, respectively. Cansortium (CNTMF) dropped 16.67%.
Top losers included:
Trees (CANN): $0.0001 (-99.84%)
Canopy Growth (NASDAQ: CGC): $5.71 (-7.46%)
ETFMG Alternative Harvest ETF (ARCA:MJ): $3.23 (-6.1%)
Tilray Brands (NASDAQ: TLRY): $1.77 (-4.84%)
Cronos Group (NASDAQ: CRON): $2.19 (-4.78%)
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While the market reacts to the uncertainty, Pablo Zuanic of Zuanic & Associates sees potential opportunities. He suggests the current volatility could open doors for strategic investors, particularly if cannabis stocks continue to drop. Zuanic believes the delay, though expected, could pave the way for significant gains if the right political conditions align post-election.
Adding fuel to the fire, Congresswoman Nancy Mace called out the DNC on the Trade To Black podcast for their lack of progress on cannabis reform. Mace didn't mince words, criticizing the Biden administration for failing to deliver on campaign promises and hinting that any last-minute rescheduling move might be a desperate bid to win over voters. She also highlighted the importance of hemp in South Carolina’s economy, offering it as a middle ground for Republicans hesitant about THC-rich cannabis.0
The DEA reminded us that marijuana remains illegal under federal law, meaning arrests are still on the table. While the agency focuses on major traffickers, they haven't ruled out going after individual users. DEA spokesperson Brian McNeal emphasized that while small-time arrests aren't the goal, the federal classification of cannabis as a Schedule 1 substance means it's still treated as severely as drugs like LSD and heroin.
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Our Writers Today
Nicolás holds a B.A. in International Relations, an M.A. in International Affairs, and an M.Phil in Public Policy. He is a doctoral student in Public and Urban Policy at The New School in New York City. After working for the United Nations in 2014, Nico pivoted his research to studying the relationship between the cannabis industry and economic development.
Patricio is a development economist with extensive experience in IT, finance, and banking. He writes about the economic and social opportunities obscured by over fifty years of drug prohibition. Beyond his professional expertise, Patricio is a committed advocate for social change, passionately working to promote harm reduction and reform drug policies.
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