Core Insights - President Trump signed an executive order to expedite the rescheduling of marijuana at the federal level, potentially reshaping the regulatory framework and recognizing its medical use [1][11] Executive Order Details - The executive order directs federal agencies to reclassify marijuana from Schedule I to Schedule III of the Controlled Substances Act (CSA) [2][11] - An executive order does not create new laws but instructs federal agencies to implement policy changes consistent with existing laws [3] Current Classification and Implications - Marijuana is currently classified as Schedule I, alongside substances like heroin, which are deemed to have no accepted medical use [4] - Reclassifying marijuana to Schedule III would align it with drugs recognized for medical use, such as ketamine and testosterone, which have a lower abuse risk [4] Medical Use and CBD Developments - The order emphasizes marijuana's legitimate medicinal uses, particularly as an alternative to opioid painkillers, while clarifying it does not legalize recreational use [5][11] - The executive order may also allow certain CBD-based products to be eligible for Medicare coverage by April 2026 if prescribed by a physician [5] Industry Impact - The executive order is seen as a significant regulatory milestone for the cannabis sector, which has long sought to remove marijuana from Schedule I [7] - Moving to Schedule III could alleviate tax burdens, improve profitability by eliminating IRS Rule 280E, and enhance research access and industry credibility [8] Cautionary Notes - Experts caution that the executive order may not be as transformative as anticipated, as it does not legalize marijuana federally or resolve state-federal law conflicts [9] - Access under Schedule III would remain strictly medical and prescription-based, with no pathway for recreational legalization or unrestricted sales [9] Market Reaction - The announcement has sparked renewed investor enthusiasm, with notable gains in cannabis stocks such as Tilray Brands, Canopy Growth Corporation, and Curaleaf Holdings [12] Future Considerations - The ultimate impact of the executive order will depend on the speed of agency actions, regulatory implementation, and Congressional follow-through, which has historically been inconsistent [13]

Core Perspective - President Trump signed an executive order to reclassify marijuana from a Schedule I to a Schedule III drug, which eases federal restrictions but does not fully legalize it [1][12]. Industry Implications - The executive order encourages the reclassification process but does not legalize banking for the marijuana industry, leading to a decline in pot stocks [14][15]. - Tax breaks for the marijuana industry may increase advertising and promotion, which raises concerns about commercialization and its impact on public health [15][16]. - The marijuana industry is facing skepticism due to rising addiction rates and health concerns associated with stronger marijuana products [7][10]. Health Concerns - Current marijuana is significantly stronger than in the past, with THC levels reaching up to 99%, leading to increased risks of psychosis, violence, and other health issues [4][5][10]. - Medical associations worldwide agree that marijuana consumption poses health risks, and many users of medical marijuana may not benefit from it [7][10]. - There is a growing public awareness of the negative effects of marijuana, leading to a shift in opinions against its legalization in some states [11][27]. Regulatory Landscape - The executive order does not create new regulations but rather directs the attorney general to expedite existing processes for reclassification [13]. - There is no current momentum in Congress for federal legalization, and some states are even considering repealing legalization measures [26][28]. - The administration is attempting to draw a distinction between medical and recreational use, which presents regulatory challenges [19].

Terms of Use Privacy Notice Accessibility About Us Reviews Site Map Your Ad Choices Advertising Contact us IBD Stock Charts IBD Stock Checkup Stock Quotes Stock Market Today The Big Picture My Stock Lists IBD Live Leaderboard SwingTrader MarketSurge IBD Digital MarketDiem The Wall Street Journal Barron's MarketWatch Dow Jones Smart Money Connect With Us On stocks they discuss. We make no representations or warranties regarding the advisability of investing in any particular securities or utilizing any speci ...

U.S. President Donald Trump on Thursday said he would sign an order recommending the loosening of federal regulations on marijuana, a move that could further reverse decades of tough-on-weed policy. ...

Industry Overview - The U.S. cannabis market is projected to approach $45 billion in sales by 2025, with analysts expecting double-digit annual growth through 2030 [1] - More states are supporting recreational cannabis access, and medical adoption is expanding nationwide [1] - Recent news indicates that President Trump may issue an executive order to reclassify cannabis from Schedule I to Schedule III, which could ease restrictions on research, taxation, and investment [1] Trading Insights - Traders are advised to adopt a disciplined process, utilizing technical analysis to identify momentum before volume surges [2] - Key indicators include moving-average curls, trendline breaks, and heavy bid stacking near support [2] - Position sizing should remain small due to the high volatility associated with penny stocks [2] Company Highlights AYR Wellness Inc. (AYRWF) - AYR Wellness is a multi-state cannabis operator based in Miami, Florida, focusing on medical and adult-use cannabis [6] - The company has a vertically integrated structure with cultivation, processing, and retail operations across several states [6] - Financially, AYR reported stagnant revenue year-over-year, with losses expanding due to increased operational costs and competitive pricing pressure [8] FLUENT (CNTMF) - FLUENT is a vertically integrated cannabis company headquartered in Tampa, Florida, with operations in cultivation, manufacturing, and retail [9] - The company has a significant presence in Florida, New York, and Pennsylvania, operating over thirty dispensaries [9] - Recent financial results showed nearly flat revenue year-over-year, with margins compressed due to pricing mix and processing inefficiencies [10] Curaleaf Holdings Inc. (CURLF) - Curaleaf is one of the largest cannabis retailers in the U.S., with about 150 retail locations and a diverse product offering [12] - The company has seen revenue growth as new adult-use markets opened, although profitability remains uncertain due to high compliance and operational costs [13] - Curaleaf's extensive retail network provides a competitive advantage, positioning the company well for future growth as federal reforms progress [13] Market Sentiment - The cannabis trade in December focuses on positioning rather than certainty, with stocks like AYRWF, CNTMF, and CURLF providing exposure to real dispensaries and revenue [14] - Improving state access and consumer demand could lead to a stronger industry outlook in 2026 [14]

Industry Overview - The cannabis sector is experiencing increased interest due to potential federal reform, particularly regarding the classification of cannabis as a Class 3 substance by Donald Trump, which has sparked speculation and investment strategies aimed at profit [1][2] - As of 2025, the USA remains the largest cannabis market globally, with ongoing state-level reforms contributing to growth and investment opportunities [2] Company Highlights - **Glass House Brands Inc. (OTC:GLASF)** reported Q3 2025 earnings with revenue of $38.4 million, exceeding guidance of $35 million to $38 million, but down from $63.8 million the previous year. The gross profit margin was 31%, a decline from 52% in Q3 2024 and 53% in Q2 2025. Adjusted EBITDA was negative at $(2.3) million, compared to $20.4 million in Q3 2024 and $18.1 million in Q2 2025. Operating cash flow was also negative at $(5.1) million, down from $13.2 million in Q3 2024 and $17.7 million in Q2 2025 [10] - **Planet 13 Holdings Inc. (OTC:PLNH)** has initiated an exclusive partnership to introduce ONI's products to Florida, emphasizing quality and innovation in cannabis offerings [12] - **Ascend Wellness Holdings, Inc.** is engaging in a new partnership with Mister Jones, LLC, marking a significant milestone under New Jersey's Assembly Bill A4151. This partnership aims to support retail space funding and ensure a steady product flow, enhancing operational capabilities [13]

Core Viewpoint - The marijuana industry, particularly companies like Curaleaf Holdings, experienced significant stock price increases following President Trump's indication of potential federal cannabis law reform through marijuana rescheduling [1][4]. Group 1: Market Reaction - Curaleaf Holdings saw a stock price increase of 23.18%, closing at $4.53, with a market cap of $2.8 billion [5][6]. - The stock reached a day's range of $3.65 to $4.66, and its 52-week range was from $0.68 to $4.66, indicating substantial volatility and investor interest [6]. Group 2: Presidential Remarks - President Trump suggested he is "considering" an executive order to direct the Justice Department to initiate the marijuana rescheduling process, which could lead to significant changes in federal cannabis policy [2][4]. - The Drug Enforcement Administration (DEA) currently classifies marijuana as a Schedule I drug, which is the most restrictive category, indicating its perceived danger [2]. Group 3: Industry Implications - If the executive order is enacted and the DEA begins the rescheduling process, it could lead to a drastic improvement in the fortunes of Curaleaf and other marijuana industry peers, effectively creating a national market for legal marijuana [6]. - The current challenges faced by the marijuana industry include limited access to financial products and services due to the federal illegality of cannabis, which rescheduling could alleviate [7].

Industry Overview - Investors are optimistic about potential changes in U.S. drug laws, particularly regarding marijuana legalization, which could significantly impact the industry [1][6] - The prospect of decriminalization has led to increased interest in marijuana stocks, with notable price movements observed [2][6] Company Specifics - Green Thumb Industries (GTBIF) experienced a surge of over 14% following comments from President Trump regarding the potential for rescheduling marijuana [2][5] - The current market capitalization of Green Thumb Industries is $1.9 billion, with a day's trading range between $8.48 and $9.95 [6] - The company has a gross margin of 48.93%, indicating a strong financial position within the industry [6] Regulatory Impact - President Trump's remarks suggest that the administration is considering an executive order to reschedule marijuana, which could lead to significant research opportunities and a more favorable business environment for companies like Green Thumb [5][7] - If rescheduling occurs, it would effectively legalize marijuana across the U.S., marking a historic shift for the industry [6]

After many false starts, investors are once again betting that marijuana businesses are close to seeing federal restrictions ease. ...

Core Insights - Marijuana stocks present both short-term and long-term investment opportunities, with current low prices creating a favorable buying environment before the new year [1] - The cannabis market is influenced by reform measures, with speculation rising around potential legislative changes, such as the rescheduling of cannabis to Class 3 [2] - The expansion of cannabis legalization in various states and the growth of markets in Canada and Europe are expected to positively impact marijuana stock trading [3] Company Highlights - **Green Thumb Industries Inc.** reported Q3 2025 revenue of $291.4 million, a 1.6% increase year-over-year, with cash at quarter end totaling $226.2 million and GAAP net income of $23.3 million [10] - **Cresco Labs Inc.** is expanding its operations into Germany, launching its flagship flower brand, which reflects its growth strategy beyond the U.S. market [11][13] - **Verano Holdings Corp.** received a conditional license to operate in Texas, allowing it to cultivate, process, and dispense medical cannabis, pending final approval [14][16]