Key Takeaways Weed stocks dropped Monday afternoon, reversing early gains on hopes President Trump could soon issue an executive order reclassifying marijuana. An expected reclassification from a Schedule I to a Schedule III drug would help companies in the sector reduce their taxes and relax banking restrictions. Weed stocks aren't flying so high anymore. Shares of Tilray Brands (TLRY) dropped nearly 5%, Canopy Growth (CGC) slipped 3%, and other cannabis stocks also lost ground in recent trading, reve ...

Group 1: Market Reaction and Regulatory Changes - Canadian cannabis stocks, including Tilray (TLRY), surged following reports that President Donald Trump could sign an executive order reclassifying marijuana from a Schedule I drug to Schedule III, which would allow cannabis companies to deduct business expenses and improve access to banking services [1] - Tilray's stock jumped 44% on Friday, reflecting strong market sentiment following the news [2] Group 2: Financial Performance - In fiscal Q1 of 2026, Tilray reported record revenue of $210 million, a 5% year-over-year increase, driven by gains in both domestic and international markets [4] - Sales for adult-use cannabis in Canada rose 12%, while international revenue increased by 10% year-over-year [5] - Tilray achieved a net income of $1.5 million in Q1, a significant improvement from a loss of $34.7 million in the same period last year [5] Group 3: Operational Developments - The beverage segment remained flat as management rationalized its SKUs under Project 420, which has generated $25 million in annual savings [6] - Tilray's craft beer portfolio performed well, with Shock Top emerging as a top-selling brand in the Southeast, where dollar sales rose 49% year-over-year [7] Group 4: Balance Sheet and Financial Health - Tilray strengthened its balance sheet by reducing outstanding debt by $7.7 million, ending with $265 million in cash [8] - The company raised $22.5 million through its at-the-market equity program, improving its net debt to adjusted EBITDA ratio to 0.07x, providing flexibility for future growth investments [8]

Core Viewpoint - Tilray Brands, Inc. (TLRY) is showing potential for investment due to its recent technical movements and positive earnings revisions [1][4]. Technical Analysis - TLRY has crossed above the 20-day moving average, indicating a short-term bullish trend [1][2]. - The stock has increased by 12.5% over the past four weeks, suggesting upward momentum [4]. Earnings Estimates - There has been one upward revision in earnings estimates for the current fiscal year, with no downward revisions, indicating positive sentiment among analysts [4]. - The consensus estimate for TLRY has also increased, further supporting the bullish outlook [4]. Investment Consideration - Given the technical indicators and positive earnings revisions, TLRY may present a good opportunity for investors looking for gains in the near future [5].

Core Viewpoint - Tilray Brands, Inc. (TLRY) is showing potential for a bullish trend as it has crossed above the 200-day moving average, indicating a key level of support [1]. Group 1: Technical Analysis - TLRY has moved 12.5% higher over the last four weeks, suggesting the possibility of another rally [2]. - The 200-day simple moving average serves as a significant support or resistance level for TLRY, reflecting long-term market trends [2]. Group 2: Earnings Estimates - There has been one upward revision in TLRY's earnings estimates for the current fiscal year, with no downward revisions, indicating positive sentiment among analysts [3]. - The consensus estimate for TLRY has also increased, further supporting the bullish outlook for the company [3].

Mr. Mavroudis is a professional portfolio manager specializing in institutional and private portfolios. He focuses on risk management, which is accompanied by in-depth financial market analysis (fundamental, macro and technical) to control the risk undertaken by the portfolios. He invests in all financial instruments globally (stocks, bonds, fx, commodities), restructuring investment portfolios based on prevailing conditions and the needs of each client-investor. Mr. Mavroudis has successfully navigated all ...

Core Insights - Shares of Tilray Brands, Inc. (TLRY) surged 44.1% on December 12, 2025, due to reports of a potential executive order from President Donald Trump to reclassify marijuana under federal law, marking one of TLRY's strongest single-day gains in years [2][8] - The anticipated reclassification could significantly alter U.S. drug policy, easing federal restrictions that have historically limited banking access, increased tax burdens, and constrained institutional investment in the cannabis sector [3] - The reclassification prospect has raised hopes for lower compliance costs and improved profitability for U.S. operators, while international companies like Tilray may find clearer pathways for expansion and partnerships in the U.S. market [4] Industry Impact - The surge in TLRY's stock also positively affected other cannabis-related stocks, with Canopy Growth Corporation (CGC) and Aurora Cannabis Inc. (ACB) experiencing gains of 54% and 18.7%, respectively, as investors anticipate broader reforms that could include expanded research and easier access to capital [5] - Despite the rally, the cannabis sector remains highly volatile and dependent on concrete actions from policymakers, with uncertainty persisting until the executive order is formally signed and its implications clarified [7] - The sharp increase in Tilray shares underscores the industry's sensitivity to federal reform signals and the rapid shifts in investor sentiment regarding regulatory changes [8]

Core Insights - Cannabis stocks experienced a significant surge on December 12, 2025, due to reports of President Trump's plans to ease federal marijuana regulations by reclassifying it to Schedule III from Schedule I, leading to increased investor optimism [1][2] - The potential reclassification could allow cannabis companies to benefit from different tax regulations and encourage further investment, with expectations for the change to materialize early next year [2][4] - The reported policy change is viewed positively by industry experts, as it would facilitate banks in providing services to cannabis-related businesses, with a finalized rule anticipated by summer 2026 [4] Market Performance - Major cannabis ETFs saw substantial gains on December 12, 2025, including Amplify Seymour Cannabis ETF (CNBS) up over 54%, Roundhill Cannabis ETF (WEED) up 55.7%, Advisorshares Pure US Cannabis ETF (MSOS) up 54.3%, Amplify Alternative Harvest ETF (MJ) up 42.8%, Advisorshares Pure Cannabis ETF (YOLO) up 34.5%, and Cambria Cannabis ETF (TOKE) up 20.9% [1][3] - Despite the recent surge, cannabis stocks have faced challenges since the pre-Covid boom, with Tilray (TLRY) shares down approximately 84.4% over the past five years and the MJ ETF declining about 78.9% during the same period [5][6] Industry Outlook - The potential regulatory shift is seen as a step towards normalizing cannabis under federal law, with increasing acceptance and easing regulations in several states [5] - The cannabis industry has shown signs of recovery during Trump's second term, evidenced by a 37% increase in the MJ ETF and a 53.9% surge in the MSOS ETF [6]

Group 1: Market Overview - Several high-volatility healthcare and cannabis stocks experienced sharp after-hours gains despite a quiet news day, driven by recent catalysts and technical momentum [1] Group 2: Tilray Brands, Inc. (TLRY) - Tilray's stock rose by 11.36% after hours, reaching $13.53, following a one-for-ten reverse stock split effective December 1, and had already increased by 44.13% during the day [2] Group 3: Valneva SE (VALN) - Valneva's shares increased by 7.22% after hours to $9.31, recovering from a 3.45% decline earlier in the day, supported by positive data from its Phase 2 chikungunya vaccine trial [3] Group 4: Chemomab Therapeutics Ltd. (CMMB) - Chemomab's stock rose by 7.66% after hours to $2.39, reacting to results from its Phase 2 SPRING trial published in the American Journal of Gastroenterology [4] Group 5: Genenta Science S.p.A. (GNTA) - Genenta's shares climbed by 12.06% after hours to $1.58, rebounding from a 14.5% drop, following updated data from its TEM-GBM study in glioblastoma patients [5] Group 6: Kazia Therapeutics Limited (KZIA) - Kazia's stock increased by 10.93% after hours to $11.57, recovering from a 20% decline, after presenting new evidence for its PI3K/mTOR inhibitor at the 2025 SABCS [6] Group 7: Traws Pharma, Inc. (TRAW) - Traws Pharma's shares edged up by 8.81% after hours to $2.54, maintaining active trading momentum despite no new developments [7]

Core Insights - The cannabis industry is poised for increased profitability as shares of Tilray Brands surged 65% in a week, driven by investor optimism regarding potential regulatory changes from the Trump administration [1][5]. Regulatory Changes - President Trump is reportedly considering reclassifying marijuana from a Schedule I drug to a Schedule III drug, with a decision expected as soon as December 15 [3]. - Schedule I drugs are defined as having no accepted medical use and a high potential for abuse, while Schedule III drugs have moderate to low potential for dependence [4]. Financial Implications - A reclassification could facilitate cannabis companies' access to banking and traditional financial services, and allow them to claim federal tax deductions for business expenses currently disallowed [6]. - This regulatory shift is likely to enhance after-tax profits for Tilray and other cannabis producers, potentially leading to a more lucrative market environment [6].

Core Insights - U.S.-listed cannabis stocks are gaining attention due to potential federal marijuana policy changes, specifically the reclassification of cannabis from Schedule I to Schedule III under the Controlled Substances Act [1][2] - This reclassification could lead to significant federal reforms, easing regulatory pressures, reducing taxes, and attracting institutional capital, which has already resulted in a rally in cannabis equities [2][3] Industry Overview - The potential rollback of Section 280E is a key factor, as it currently prevents cannabis companies from deducting ordinary business expenses, which would improve after-tax profitability and cash flow if reclassified [3] - Better access to banking and capital markets could support valuation expansion for financially disciplined operators [3][4] Company Analysis: Tilray Brands - Tilray Brands (NASDAQ: TLRY) is positioned to benefit from renewed optimism around federal reform, reporting approximately $200 million in revenue, with cannabis contributing nearly half [5] - The company achieved positive adjusted EBITDA of about $13 million and returned to net profitability, ending the quarter with over $400 million in cash and marketable securities [6] - Tilray's valuation is sensitive to regulatory changes, and it serves as a primary entry point for institutional investors, which could lead to accelerated capital inflows upon confirmation of reclassification [7][8] Company Analysis: Canopy Growth - Canopy Growth (NASDAQ: CG) is seen as a leveraged play on U.S. cannabis reform, with a stock rally of over 50% following regulatory news, closing at $1.74 [11] - For Q2 fiscal 2026, Canopy reported approximately $49 million in revenue, with adult-use cannabis revenue increasing by about 30% year-over-year and medical cannabis revenue rising roughly 17% [13] - Although still unprofitable, Canopy's adjusted EBITDA losses are narrowing, and its liquidity position has improved, with cash exceeding total debt by approximately $51 million [14][15]