Maryland Blooms, Senate Simmers

Cannabis pops to start the third quarter.

Daily Recap

The midpoint of 2023 is behind us and despite adult-use launching in Connecticut, Missouri and Maryland, it was yet another sloppy stretch of performance as investors await federal regulatory reform.

We’ll know more on pace of that cadence this month (see below) and still expect 2H23 to be catalyst-rich, just as the underlying fundies begin to improve for the 'haves.’

We foresee further struggles among the 'have not's' as the status quo separates those fates, which is something to keep in mind when the next rising tide arrives to lift all the cannabis boats. Some will prove seaworthy over time; others not so much.

The abbreviated trading session ahead of tomorrow’s 4th of July holiday (TerrAscend listing) was skinny but solid: $34M notional traded (US only; half day) as the US canna ETF MSOS finished +8.7% (now -14% YTD).

Canadian cannabis stocks also rallied sharply, paced by Canopy Growth, which gained 50% (at least) in some part due to repositioning (after the stock got purged to end Q2) and short covering. The stock is still down 74% YTD.

Today’s Top Stories