Marijuana Stock Investors Are On The Way To Seeing Big GainsMarijuana stocks, even with their volatile behavior, still offer diverse investment opportunities. Not every sector or company deals directly with the plant, so investors see this as an opportunity to capitalize. Now, even with that said, MSO and companies that work directly with the plant tend to capture more market share. Also, they are usually the first to see a run in trading when the time comes.However, there are ancillary companies that creat ...

Industry Overview - The cannabis industry is undergoing significant changes with new laws and regulations that support its development [1][2] - Investors are focusing on companies that demonstrate strong performance or are working towards substantial goals, which can lead to profitability [1] Investment Opportunities - In 2026, there is anticipation for a new marijuana stock run, with potential breakout opportunities for various cannabis stocks [2][3] - It is crucial for investors to prepare for the volatility inherent in the cannabis sector [2] Key Companies to Watch - **Tilray Brands, Inc.**: Engages in the research, cultivation, processing, and distribution of medical cannabis products across multiple regions including Canada, the US, and Europe [4] - Recently appointed Romano Beverage to enhance distribution in Illinois, indicating a strategic move to accelerate growth [5][6] - **Cronos Group Inc.**: Focuses on the cultivation, production, distribution, and marketing of cannabis products internationally [8] - Launched its Lord Jones® premium cannabis brand in Israel, highlighting its strategy to penetrate key markets [9][10] - **SNDL Inc.**: Involved in the production and distribution of cannabis products for the adult-use market in Canada [10] - Announced a share repurchase program authorizing the repurchase of up to C$100 million of its outstanding common shares, indicating confidence in its stock value [12][13]

Group 1: Company Overview - SNDL Inc. operates in the Canadian adult-use cannabis market with a diversified business model that includes Liquor Retail, Cannabis Retail, Cannabis Operations, and Investments, allowing it to balance performance across segments [1] - The company is involved in the production, distribution, and sale of cannabis products, providing exposure to multiple parts of the value chain [1] Group 2: Recent Acquisitions - On January 8, SNDL completed the acquisition of five 1CM cannabis retail locations in Alberta and Saskatchewan, marking the first closing under its amended agreement with 1CM Inc. [2] - This acquisition is part of a larger plan to add 27 Ontario-based stores, which are pending regulatory approvals [2] - An amended agreement with 1CM Inc. was announced on December 15, 2025, to acquire 32 cannabis retail stores for a total cash consideration of $32.2 million, structured into two closings to meet regulatory requirements [3] Group 3: Financial Performance - In Q3 2025, SNDL reported a record quarterly free cash flow of $16.7 million and a positive cumulative free cash flow of $7.7 million for the first nine months of the year [4] - Net revenue increased by 3.1% year over year to $244 million, driven by strength in the Cannabis segment, which helped offset challenges in the Liquor Retail business [4] - These results indicate improving cash generation and resilience despite broader market headwinds [4]

Core Insights - Tilray Brands (TLRY) reported a strong international quarterly performance in Q2 of fiscal 2026, with revenues from its international cannabis business increasing by 36% year over year and 51% sequentially to $20 million, despite facing permit challenges and price compression [1][8] Group 1: International Market Performance - The international cannabis market is a key long-term growth driver for Tilray, supported by increasing market opportunities, revenues, and profitability [2] - The company has reduced supply in the Canadian wholesale market to focus on international markets, maintaining a leading position in Canada across various product categories [2][3] - Tilray's cannabis cultivation capacity has increased to 200 metric tons annually, aiding its expansion into fast-growing markets and improving margins [3] Group 2: Product Expansion and New Markets - Tilray is expanding its beverage business globally, with plans to launch HiBall Energy in the U.K. and further expansion into the Middle East and Africa [4] - The company has entered the Quebec market with vapes under the Good Supply brand, quickly achieving top three SKU positions in the province [3] Group 3: Competitive Landscape - Village Farms International's subsidiary, Pure Sunfarms, is launching 10 new products in the Netherlands, reflecting a focus on innovation and competitive differentiation [5] - SNDL Inc. has acquired five cannabis retail stores in Alberta and Saskatchewan, with plans for further acquisitions in Ontario [6] Group 4: Financial Performance and Valuation - Tilray's shares have increased by 40.4% over the past six months, contrasting with a 6.6% decline in the industry [7] - The company is trading at a forward Price-to-Sales (P/S) ratio of 1.22X, which is lower than the industry average of 2.81X [9]

Core Insights - President Trump's executive order to reschedule cannabis to Schedule 3 is considered a significant shift in federal cannabis policy, potentially alleviating the burdensome tax regime affecting U.S. cannabis operators for decades [1][2]. Tax Implications - The executive order could lead to the elimination of Section 280E of the Internal Revenue Code, which currently taxes legal cannabis operators as if they were narcotics traffickers, preventing them from deducting any business expenses [2][3]. - Rescheduling cannabis to Schedule 3 would allow U.S. companies to deduct standard operating costs, significantly improving their financial health and cash flow [3]. Market Reaction - The cannabis industry is responding positively to the news, especially after a strong performance in 2025, where the AdvisorShares MSOS ETF outperformed the S&P 500 [4]. - Despite the optimistic outlook, the sector is still viewed as highly volatile, with many institutional investors remaining cautious due to past political inaction [4]. Remaining Challenges - Even with the potential rescheduling, U.S. cannabis companies still face hurdles, such as the inability to list on major exchanges like NASDAQ or NYSE, which is available to Canadian companies [5]. - The industry is also awaiting "safe harbor" provisions for banking, which remain unresolved [5]. Stock Performance - Recent performance data for cannabis stocks and ETFs shows varied results, with AdvisorShares Pure U.S. Cannabis ETF (NYSE:MSOS) leading with a 68.55% increase over six months, while other companies like Tilray Brands Inc. (NASDAQ:TLRY) and Canopy Growth Corp. (NASDAQ:CGC) show mixed performance [7].

Industry Overview - The cannabis sector is experiencing growth despite historical volatility, with expectations for significant developments by 2026 that could benefit shareholders [1][2] - Recent legislative changes in the U.S., including the reversal of the 2018 farm bill and an executive order to reschedule cannabis, have sparked speculation about the future profitability for legal operators [2] Company Highlights - **Cronos Group Inc.**: Engages in the cultivation, production, distribution, and marketing of cannabis products internationally. Recently entered the Netherlands market by acquiring CanAdelaar B.V., the largest cannabis company in the Netherlands, which is seen as a strategic move to expand its footprint in Europe [3][4][5] - **Aurora Cannabis Inc.**: Focuses on the production and distribution of cannabis products. The company has made significant advancements in disease resistance research, moving from research to production trials of cultivars with verified PM2 resistance [6][7][8] - **SNDL Inc.**: Engages in the production and sale of cannabis products for the adult-use market in Canada. Recently received approval for a share repurchase program, allowing the company to repurchase up to C$100 million of its outstanding common shares [9][10]

Core Viewpoint - President Donald Trump's executive order marks a significant shift in federal cannabis policy, directing federal agencies to loosen regulations on marijuana [1] Regulatory Changes - The order instructs U.S. Attorney General Pam Bondi to expedite the rescheduling of marijuana to Schedule III under the Controlled Substances Act, aligning it with common painkillers but not fully legalizing it [2] - Marijuana's current classification as a Schedule I substance has limited research opportunities, and reclassification aims to enhance studies on safety and effectiveness, particularly for vulnerable populations [4] Access to CBD Products - The order outlines steps to improve access to hemp-derived cannabinoid products, especially cannabidiol (CBD), which currently lacks a clear regulatory pathway through the FDA [5] - It directs the White House Deputy Chief of Staff to collaborate with Congress to expand access to full-spectrum CBD products while restricting those posing health risks [6] Political Reactions - Senate Minority Leader Chuck Schumer supports the order, viewing it as a positive step, but emphasizes the need for further decriminalization and easing banking regulations for the cannabis industry [7] - Conversely, some Republican senators, including Ted Budd, criticize the order as shortsighted and potentially harmful to youth [7][8] Market Reactions - Cannabis stocks initially surged following the announcement but retreated by the close, attributed to the lack of expected cannabis banking provisions in the order [9] - Despite the retreat, major cannabis stocks have seen significant gains throughout the month in anticipation of the executive order [11]

Core Viewpoint - SNDL shares experienced a nearly 12% increase following reports of a potential reclassification of cannabis as a "Schedule III" drug by the Trump administration, which may also allow seniors access to cannabis products under Medicare coverage [1][2]. Company Developments - SNDL stock has shown volatility, currently down over 25% from its year-to-date high in early October despite recent gains [2]. - The company has agreed to acquire 32 cannabis retail stores from 1CM in Canada, which could enhance its market share as it expands its retail footprint in key provinces like Ontario, Alberta, and Saskatchewan [3][4]. - SNDL reported a record $16.7 million in free cash flow for Q3, positioning the company well for growth initiatives in the upcoming year [4]. Market Position and Valuation - SNDL shares are currently trading at a price-sales multiple of less than 1x, indicating an inexpensive valuation relative to the long-term potential of the cannabis industry [5]. - The recent rally has pushed SNDL shares above $2, reducing the delisting risk that had previously affected the stock [5]. - Options traders anticipate a more than 20% increase in SNDL shares by January 16, suggesting a potential trading price of $2.53 in early 2026 [6]. Analyst Outlook - Wall Street analysts project that SNDL stock could more than double in value over the next year, driven by favorable policy changes [7].

Core Viewpoint - Cannabis stocks experienced a rally following reports that President Trump is expected to sign an executive order rescheduling marijuana from Schedule I to Schedule III, which could lead to significant financial benefits for the cannabis sector [1]. Group 1: Tax Implications - Section 280E of the tax code currently prevents cannabis businesses from deducting standard business expenses, resulting in effective tax rates often exceeding 70% [2]. - Rescheduling cannabis to Schedule III would alleviate the burden of Section 280E, potentially allowing many cannabis businesses to achieve profitability for the first time [3]. Group 2: Market Reaction - Cannabis stocks were trading on above-average volumes and trending on social media as investors awaited an official statement from President Trump [5]. - Investors can track the sector through the AdvisorShares Pure US Cannabis ETF (NYSE:MSOS) and individual stocks of major companies such as Tilray Brands, Inc. (NASDAQ:TLRY), Canopy Growth Corp. (NASDAQ:CGC), and others [5]. Group 3: Legal Considerations - While rescheduling would ease research restrictions and tax burdens, it does not eliminate federal criminal penalties for recreational use, and marijuana would still remain illegal under federal law [4]. - The conflict between federal law and state laws that have legalized cannabis will continue to exist [4].

Group 1 - U.S. cannabis-related stocks rebounded after reports that President Trump is expected to sign an executive order on cannabis rescheduling, boosting market sentiment [1][2] - The executive order aims to address the long-delayed rescheduling of cannabis, which has not served Americans who could benefit from its medical use [1] - The White House plans to reclassify cannabis from a Schedule I controlled substance to a Schedule III substance, which includes drugs with recognized medical uses [1] Group 2 - If the rescheduling is implemented, cannabis companies are expected to benefit from tax reductions and face fewer restrictions on interstate product distribution, improving profitability and operating conditions [2] - Following Trump's confirmation to advance the cannabis rescheduling plan, cannabis stocks like MSOS experienced a quick recovery in market sentiment [2] - Notable multi-state operators in the U.S. cannabis market include Ascend Wellness, Curaleaf Holdings, Cresco Labs, Green Thumb Industries, Trulieve Cannabis, Ayr Wellness, Verano Holdings, and Jushi Holdings [3]