Latest news with #AmplifyAlternativeHarvestETF
Mint
4 days ago
- Business
- Mint
Pot Stocks Soar on Report Trump Mulling Drug Reclassification
Shares of cannabis-linked companies rallied on Monday after a report that President Donald Trump was considering reclassifying marijuana as a less dangerous drug — giving the sector a much needed boost. The stock of greenhouse production firm Village Farms International Inc. surged as much as 42% on Monday, its biggest intraday jump since June 2017. Tilray Brands Inc., Canopy Growth Corp., Aurora Cannabis Inc., SNDL Inc. and Cronos Group Inc. all climbed by double digits after the Wall Street Journal reported that the US president was interested in making the change. The report highlighted Trump's remarks made during a fundraising event, citing people familiar with the matter. Hints of a new scheduling push from the administration may have also reignited hope for a broader federal legislation push that is key to unlocking value in the sector. Cannabis is currently labeled as a Schedule 1 drug — putting it into a category that also includes substances like heroin and LSD. Former Florida Republican representative Matt Gaetz said in a March op-ed that the Trump administration would bring 'meaningful change' in reclassifying cannabis to a Schedule III drug, which puts it on the same level as anabolic steroids and the medication Adderall. 'Over the long-term, a rescheduling of cannabis would likely lift the entire sector by bolstering research, reducing stigma, improving access to capital, and opening up a large addressable market,' TD Cowen analyst Derek Lessard wrote in a Monday note. He rates Canadian cannabis producer Aurora Cannabis a buy, but reminded investors the company has no known plans to enter the US market. Even if the US approved a rescheduling of marijuana's status, it wouldn't likely have near-term effects on companies without US operations, he warned. Rescheduling is also a separate issue than federal legislation. The US operates as a state patchwork system as far as legalization goes and progress on legalizing marijuana on a federal level has been slow. The sector trades well below its 2021 heyday, when rates were lower and investor enthusiasm was at its peak. The Amplify Alternative Harvest ETF, an exchange-traded fund tracking cannabis companies, rose by as much as 20% to its highest level on Monday. It's still down more than 90% from its 2021 peak. This article was generated from an automated news agency feed without modifications to text.
CNBC
5 days ago
- Business
- CNBC
Cannabis stocks rally on Wall Street Journal report that Trump is weighing drug reclassification
Cannabis stocks rallied Monday after a Wall Street Journal report that President Donald Trump is considering reclassifying marijuana to a lower danger level. Canopy Growth and Tilray Brands each soared more than 18%. Cronos Group jumped more than 11% and hit a new 52-week high in early trading. The AdvisorShares Pure U.S. Cannabis ETF (MSOS) and Amplify Alternative Harvest ETF (MJ) each surged more than 15%. Many stocks in the sector now sell for less than a dollar per share, meaning a move of just a few cents can lead to a large percentage change. Despite Monday's rally, many of these stocks are far below their all-time highs. The latest gains followed a report in the Wall Street Journal late Friday, citing people familiar with White House thinking, that Trump was weighing whether to move marijuana to a less-dangerous drug classification. Trump shared his consideration of the matter during a fundraiser at his New Jersey golf club earlier this month, the people said. Under federal law, cannabis is currently classified as a Schedule I drug in a group that also includes heroin and cocaine. Previously, reclassification discussions have centered on moving the drug to Schedule III, a class that includes steroids and Tylenol with codeine. Reclassification would allow marijuana companies to fall under different tax regulations and encourage investment interest, among other benefits. A move from Schedule 1 to Schedule 3 would be "a gamechanger" for the roughly $80 billion market, said Tim Seymour, investing chief at Seymour Asset Management, on CNBC's "Worldwide Exchange" on Monday. He noted that such a change has seeming bipartisan support. "It does not mean that it won't be a complicated trade," Seymour said. "But it does mean that you're investing now well ahead of a lot of institutional capital if you are, in fact, investing into this sector." To be sure, Trump's backing can brighten the outlook but he cannot reclassify the drug alone. The Controlled Substances Act places that authority under the Attorney General, who has historically delegated it further the administrator of the Drug Enforcement Administration.
Yahoo
30-01-2025
- Business
- Yahoo
Are Cannabis ETFs Getting High on Their Own Supply?
Amplify ETFs has consolidated its global and US funds that offer exposure to the cannabis industry, signifying the latest example of cautious optimism surrounding the popular controlled Chicago-based ETF issuer, which officially closed its U.S. Alternative Harvest ETF (MJUS) on Jan. 27, will replace the MJUS slice of the global Amplify Alternative Harvest ETF (MJ) with the actively managed Amplify Seymour Cannabis ETF (CNBS). 'When we concluded MJUS was not going to have the success we'd like, we went from three to two products, and we revised CNBS to focus on U.S. names,' said Amplify President Bill Belden. What this essentially means for cannabis investors is that they'll face a shrinking list of ETF options at a time when a more inviting regulatory landscape appears around the corner under a Trump administration. 'We're in it to win it, and we believe cannabis has a brighter future ahead of it,' said Belden, who is banking on a rescheduling of cannabis in the U.S. from a Schedule 1 to a more recreational Schedule 3 drug. That change, which originates at the US Drug Enforcement Administration, is seen as crucial to legalizing marijuana at the federal level, which would expand banking access to the industry and ultimately grow the industry. According to data, the state-by-state legalization trend that started in 2012 has produced limited investment success. Six exchange-traded funds currently offer exposure to marijuana investments, ranging in size from the $443 million AdvisorShares Pure US Cannabis ETF (MSOS) to the $6.5 million Roundhill Cannabis ETF (WEED). In terms of performance, the best return for cannabis ETFs over the past 12 months belongs to the $14 million Cambria Cannabis ETF (TOKE), which still recorded a 13% decline, data show. On the other end of the performance spectrum, MSOS posted a 62% decline, which is only slightly better than the matching 64% declines by CNBS and WEED. Based on the $326 million worth of net inflows going into the category flagship MSOS over the past 12 months, however, there remains a dedicated crop of investors with high hopes for the category. It's hard to say where the new money is coming from, but at least one financial advisor is keeping this situation at arm's length. 'There's still a healthy dose of skepticism surrounding Trump's cannabis policy and investors should approach cannabis ETFs with caution,' said Said Israilov, founder of Israilov Financial in San Francisco. 'Trump's campaign rhetoric suggested support for rescheduling and cannabis banking reforms, but the reality is far less clear,' he added. 'While cannabis ETFs may appear to be in a buy-low position, the regulatory landscape remains highly uncertain.'Permalink | © Copyright 2025 All rights reserved Sign in to access your portfolio
