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- 🫡 Solid Start To The Week 🫡
🫡 Solid Start To The Week 🫡
Anthony Varrell
July 09, 2024
GM Everyone,
We had a mixed bag to start the week, with $MSOS modestly up a little over 1%, and several blue-chip cannabis names making modest gains as well. Meanwhile, Jim Cramer kicked off Mad Money by praising Canopy Growth on his show, highlighting the cannabis space. Additionally, we saw positive updates out of Ohio and Florida to start the week, with polling numbers heading in the right direction; Amendment 3 polled at 64%, and Ohio adult-use permits reached a total of 110 issued. Maybe the winds have shifted? It's a nice start to the week, but we have a ways to go. It's not about how you start but how you finish...
Today’s letter can be read in 7 minutes and 08 seconds.
What's Driving the Market Today?
Stock futures are up and still holding to to record highs:
U.S. CPI report expected to show headline inflation at 3.1%.
Jerome Powell's testimony to Congress starting today.
S&P 500 and Nasdaq hit record highs; chipmakers lead.
Crude oil prices drop 3% after minimal hurricane damage.
Fed funds futures price in two rate cuts for this year.
💸 High Impact
Germany Is Progressing
The What - German officials have approved the country's first marijuana social club, Social Club Ganderkesee, following the recent legalization law. This historic development is a significant step toward cannabis legalization in Germany, promoting safe and regulated access to marijuana.
Social Club Ganderkesee, located in Lower Saxony, is the first of its kind to receive a cultivation permit under the new law. The club is allowed to cultivate marijuana and provide up to 50 grams of cannabis per person monthly. With a membership cap of 500, the club aims to provide a legal means for obtaining cannabis and combat the black market.
The primary goal of these clubs is to offer a safe and controlled environment for cannabis cultivation and distribution. By regulating cannabis through such clubs, Germany aims to curb illegal activities and ensure that marijuana is obtained through legal channels. This approach is designed to enhance consumer protection and provide transparency in cannabis cultivation.
Miriam Staudte, Minister for Food, Agriculture, and Consumer Protection of Lower Saxony, highlighted the significance of this milestone on social media platform X. She stated, "Today, I presented the #Cannabis Social Club Ganderkesee with a cultivation permit together with the President of the Chamber of Agriculture Schwetje. This is a historic step for consumer protection and controlled cannabis cultivation in Germany."
The Why - The legalization of cannabis in Germany represents a broader shift in the country's approach to cannabis regulation. By establishing these clubs, the government hopes to create a regulated market that ensures quality control and safety for consumers. This move is also seen as a strategy to address the black market for cannabis, which has been a significant issue in the country.
However, the implementation of this new law may face some hurdles. Certain states in Germany may impose delays and additional restrictions on the operation of marijuana social clubs. These potential challenges highlight the need for ongoing dialogue and cooperation between federal and state authorities to ensure the smooth rollout of cannabis legalization nationwide.
The approval of Social Club Ganderkesee is just the beginning. Additional permits for marijuana social clubs are expected to be issued soon, further expanding legal access to cannabis. This development aligns with the broader trend of marijuana legalization in various parts of the world, reflecting changing attitudes toward cannabis and its regulation.
The introduction of marijuana social clubs in Germany also raises important questions about cannabis cultivation, distribution, and personal use. The new law permits individuals to grow their own cannabis plants, provided they are registered with a club. This approach aims to balance personal freedom with regulatory oversight, ensuring that cannabis is used responsibly and safely.
📈 Dog Walkers
Revenue Growth in US Cannabis MSOs
Revenue growth rates for US Cannabis MSOs have slowed over the past year, averaging 6.6%, down from 11.6% the previous year. Analysts attribute this to market maturation, regulatory delays, and fluctuating product prices.
Trump to Announce JD Vance as VP Pick, Supports State-Controlled Cannabis Regulation
Rumors suggest Trump will choose JD Vance as his Vice President, with an announcement expected by next Monday. JD Vance believes cannabis regulation should be a state matter, and no one should be imprisoned for smoking a joint. In an interview with TDR, Shadd Dales, in April, he shared his views on the SAFER Banking Act, stating, “If the legislation is better, I’d be more likely to support it.”
Federal Report Enhances Cannabis Testing Amendment 3
A federal science agency released a report to improve testing accuracy for cannabinoids, toxic elements, and moisture in marijuana and hemp. This initiative, part of the Cannabis Laboratory Quality Assurance Program, aims to enhance precision in cannabis product testing.
🗞️ The News
📭 Research
Initiating Coverage: Green Thumb Industries - Download Here
Reconfirming Buy Rating: MariMed - Download Here
Initiating Coverage Of Verano Holdings Corp. - Download Here
Initiating Coverage: TerrAscend - Download Here
📺 YouTube
Emily Paxhia Shares Marijuana Stock and Florida Yes On 3 Update
What we covered:
✅ Trade to Black with Dan Ahrens from Advisors Shares, the manager of the MSOS Cannabis ETF. Emily Paxhia, the Managing Director of Poseidon Investment Management, will join us to share her recent observations as a portfolio manager specializing in Marijuana stock investing. Dan Ahrens will also share what buying and selling trends he sees in the MSOS ETF and Cannabis stocks and what this will mean for future Cannabis stock prices.
During the conversation, host Shadd Dales will ask both guests for input on the progress they see in Florida for #YesOn3 which will be voted on in November.