Image source
An Introduction
All 12 constituents in the Canadian and American cannabis portfolios declined the week ending May 24th by an average of 14.4% and are now DOWN 28.9%, on average, since Tuesday, April 30th, when the DEA announced that it planned to follow through on the September 2023, recommendation of the Department of Health and Human Services that cannabis be reclassified from that of a Schedule I drug to a less stringently regulated Schedule III drug. The 12 stocks are now DOWN 3.7% below where they were, on average, just 4 weeks ago (April 26th).Earlier this month in a previous article (see here) I commented that “it remains to be seen how soon the enthusiasm will wane” like it had back in September 2023, when it had soared by 122% within 3 weeks (i.e. by mid-September) of the announcement only to retreat by the end of October to below what it had been when the reclassification was initially recommended and that decline could be happening again.Below are the details of the returns of the stocks in the munKNEE’s Canadian Cannabis LPs Portfolio (designated with a *) and the American Cannabis MSOs Portfolio by constituent, in descending order, for the week ending May 24th and MTD:
- Average: DOWN 14.4% w/e May 24th; DOWN 28.9% MTD
Conclusion
The cannabis sector may well have further to decline based on historical data (see here) so the question now is how much further it will drop before stabilizing. Time will tell. Stay tuned. More By This Author:Update: Ai Pin Widely Panned; Humane Announces It’s For Sale
These AI Stocks Have Momentum Up And Down
Microsoft Has Joined 4 Other AI PC Manufactures With Two Copilot+ PC Models
