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💸Big Earnings Week Ahead 💸

Author

William McNarland
March 11, 2024

GM Everyone,

Happy Monday! We have another week of earnings ahead of us, with some of the top names getting ready to report. This week, we have AYR Wellness, The Cannabist, TerrAscend, and Jushi, to name a few, all of whom will be appearing on Trade To Black this week to discuss their earnings. With this cohort of MSOs reporting, we're going to get a glimpse into what people have been speculating could have "more torque" for a move higher than their Tier 1 peers based on a rescheduling announcement. While this may hold true for some, the rising tide may not lift all boats this time around. So, buckle up, read up, and get ready for another busy week in the cannabis sector.

Today’s letter can be read in 9 minutes and 14 seconds. 

  • BTC is running hot hot hot

  • Cannabis earnings are on deck

  • Fridays Washington update was a must watch

  • $MSOS Mondays on deck at 4pm today!

Capital Markets Recap of Monday:

Do you ever wonder why there are so many TDR Indexes? Yesterday provided a clear reason. Consider this difference in performance: the TDR Retail Cannabis Index rose by over 9%, similar to the TDR Crypto Index. However, the TDR Integrated Cannabis Index fell by almost 4%, and the TDR Crypto Miners Index dropped by almost 9%. Indexes allow us to understand how distinct subsets perform.

Capital Markets this Morning:

What's Driving the Market Today?

The futures are showing a slightly positive open currently, here is what is in focus:

  1. US inflation update awaited

  2. Nvidia drops 2% more and 7% since Thursday

  3. Boeing stock declines further

  4. Biden's $7.3T budget proposal

  5. Global: Yen falls, China shares up

Cannabis Capital Markets Price Overview:

The High Flyers yesterday were led by CordovaCann which was up by just over 39%, and the Low Flyers were led by Skye, which was down over 25% on the day. Here are the charts of the High and Low Flyers:

Let's examine the highlights from companies in the TDR Comprehensive Cannabis Index!

  1. NewLake (OTC:NLCP) surpasses Q4 estimates and raises dividends amid solid annual growth. Read all about it on the TDR Website!

  2. Skye (OTCQB: SKYE) secures $40 million through a private equity financing to fund obesity treatment expansion and extend its operations beyond 2026.

  3. iAnthus (CSE: IAN, OTCQB: ITHUF) announces the immediate resignation of Director John Paterson, with no successor yet appointed.

  4. Canopy Growth (TSX:WEED) yesterday announced a shareholder vote on creating exchangeable shares, offering new investment flexibility and strategic options. Read all about it on the TDR Website!

  5. Vext Science (CSE: VEXT, OTC: VEXTF) switched auditors from BF Borgers CPA to Reliant CPA effective March 8, 2024, following CPAB enforcement actions.

  6. Earnings are in full swing today, check out the chart below!

Cannabis: News

  1. Massachusetts Gov. Maura Healey plans to pardon thousands convicted of simple cannabis possession.

  2. Virginia's session ends without legalizing adult-use marijuana sales due to political disputes.

Cannabis Policy: Highlights from our Friends at Marijuana Moment

  1. Biden's budget keeps a rider blocking D.C. from legalizing marijuana sales but supports state medical cannabis programs.

  2. Hawaii House leaders are optimistic about legalizing adult-use marijuana, focusing on revenue and regulation.

  3. Study finds CBD may alleviate menstrual-related symptoms like irritability and stress, but not depression.

  4. Delaware releases a third round of draft rules for its upcoming adult-use marijuana market, covering testing, disposal, and more.

  5. New Hampshire's GOP Governor Sununu would sign a marijuana legalization bill with a state-run model, despite personal reservations.

  6. Minnesota begins inspecting retailers for illegal marijuana sales labeled as 'hemp' amid regulatory gaps.

Crypto and Miners

  1. Ethereum surpasses $4,000, driven by the upcoming Dencun upgrade and potential SEC approval for an ETH ETF.

  2. FDIC Vice Chair advocates for clearer, more flexible regulations on digital assets, criticizing current restrictive policies.

  3. Donald Trump hints at regulatory leniency for cryptocurrencies, recognizing their increasing role while maintaining traditional financial values. Read all about it on the TDR Website!

AI

  1. OpenAI updates its board and governance after recent upheavals, aiming for improved oversight and accountability.

  2. The controversy over the Princess of Wales editing a family photo highlights growing concerns about media manipulation and trust.

Big $$ Volume Big Caps

  1. Oracle (NYSE:ORCL) exceeded Q3 expectations with earnings of $1.41 per share and revenue of $13.28B, driven by a 12% increase in cloud services.

  2. Apple (NASDAQ:AAPL) is testing an AI-driven ad product in the App Store, aiming to enhance its advertising segment.

  3. Elon Musk announces xAI will open source its Grok chatbot this week, amid a lawsuit against OpenAI, alleging deviation from its original open-source mission.

Yesterday’s episode featured a Q4 earnings analysis with Anthony Coniglio, CEO of NewLake Capital, and MSOS Mondays with Dan Ahrens, Managing Director & Chief Operating Officer of AdvisorShares ETFs