Boo's Crew

Halloween headlines spook investors.

Daily Recap

A list of 25 potential participants was issued by the DEA for a December hearing on marijuana rescheduling, according to a preliminary order issued today and obtained by POLITICO from two different sources.

Elected state officials, scientists, lawyers, doctors, representatives of law enforcement groups and advocates from both the pro- and anti-legalization camps were included in the list for the Dec. 2 hearing, which will be presided over by Chief Administrative Law Judge John Mulrooney II.

After DEA Administrator Anne Millgram signed off on over two dozen witnesses to participate in the hearing on Monday, Mulrooney issued a preliminary order today signaling that the information provided was insufficient and requesting additional details and availability for a formal hearing in January or February.

Debunk Beds

Weed use among U.S. teenagers fell dramatically over the past decade, a new study shows. By 2021, only about 16% of teens said they were currently using cannabis, down from 23% in 2011, researchers found.

All grades experienced a notable decline in current use, particularly among ninth graders, researchers said. Further, the percentage of kids who tried weed for the first time prior to age 13 also declined, sinking to about 5% in 2021 from 8% in 2011.

Penn & Tellers

The governor of Pennsylvania has signed a bill to correct an omission in a law that unintentionally excluded dispensaries from state-level tax relief for the medical marijuana industry.

As originally enacted, the marijuana provision allowed other licensee types such as growers and processors to take state tax deductions equivalent to what they’re denied under the federal Internal Revenue Service (IRS) code known as 280E.

New York Met’s Yankees Cannabis

Whitney Economics’ new report strenuously suggests that the state’s cannabis market will hit $6 billion in two years. Despite a difficult launch, New York now has more than 200 licensed stores open and is poised to deliver just under a billion in sales for 2024, which would be a 236% increase year-over-year.

If the number of retail operators continues to grow and legal participation increases, Whitney expects sales to exceed $1.3 billion annually by 2025 and $3.3 billion by 2027.

Stocks & Stuff

Stop me if you’ve heard this before but cannabis stocks were softer on the session as a bevy of unknowns await, including the fate of Florida adult-use, the composition of the U.S. government and resolutions surrounding things like the Farm Bill loophole.

MSOS was flat for most of the day despite a triple-digit loss in the S&P and a 500 pt spanking in the NASDAQ, but old habits die hard and the ETF slipped 1-ish% as other names ticked to all-time lows.

Below, we’ll add what we can, share what we see, and do what we do as we navigate parts unknown in search of clarity and value add. All that and more, just scroll down.

SPY 0.00%↑ QQQ 0.00%↑ IWM 0.00%↑ MSOS 0.00%↑ ETF Notional: $78M

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