Core Insights - The excitement around marijuana rescheduling in December has positively impacted many cannabis stocks, particularly due to President Trump's executive order to expedite the rescheduling of cannabis from Schedule I to Schedule III [1][2] - Not all cannabis companies will benefit equally from this development, with multi-state operators in the U.S. market expected to gain the most [1][2] Company-Specific Insights - Green Thumb Industries is highlighted as a significant beneficiary of marijuana rescheduling, with expectations of increased free cash flow [2][4] - The CEO of Green Thumb estimates an additional $60 million in free cash flow annually due to the removal of Section 280e from the tax code, which previously restricted standard deductions for cannabis companies [5][4] - Green Thumb has demonstrated strong financial performance, with a total free cash flow of $154.5 million and a net income of $43.6 million over the past 12 months, on revenues of just under $1.2 billion [6] Market Position and Valuation - Green Thumb's market capitalization stands at $1.9 billion, with a price-to-sales multiple of 1.7, indicating potential undervaluation given its growth prospects [7] - The company is considered one of the safer investments in the cannabis sector, generating positive cash flow and maintaining profitability [6][7] - There is potential for significant upside in Green Thumb's stock if further marijuana reforms occur, making it an attractive long-term investment opportunity [7]

Core Viewpoint - Tilray Brands (NASDAQ: TLRY) presents a mixed investment opportunity, with potential upside linked to U.S. marijuana legalization, but hindered by poor financial performance and stock returns [1] Group 1: U.S. Marijuana Reform - There is renewed optimism regarding marijuana reform in the U.S. as President Trump considers rescheduling marijuana, which could change its classification from a Schedule I substance [2][4] - Rescheduling marijuana may acknowledge its medical benefits, but does not equate to legalization, which is crucial for Tilray to enter the U.S. market effectively [6][7] Group 2: Tilray's Financial Performance - Despite the optimism surrounding potential marijuana reform, Tilray's financial results indicate a decline in marijuana revenue in its most recent fiscal year [7] - The company's stock performance is closely tied to the outlook for marijuana reform in the U.S., with recent developments causing some bullish sentiment among investors [7]