- Ring The Bell
- Posts
- 🌱 High Supply
🌱 High Supply
Cannabis stocks rip higher on rescheduling optimism. Plus, will St. Patty's Day bring back a green market?
Brooks Dyroff
March 15, 2024
Happy Friday Zingers! Not the note we wanted to end the week on, but hey, at least it’s Friday. The S&P 500 just posted its second-straight weekly loss after investors got spooked by a string of hotter-than-expected inflation data, which could cause interest rates to stay higher for longer.
On the bright side, it’s St. Patrick’s Day this weekend. Maybe some green beers will help bring some green back to the market next week?
Today’s Price Action:
$SPY: -.69%
$QQQ: -1.19%
$DIA: -.55%
Also, check out the company that’s creating fire-resistant, carbon-neutral homes from the future.
And, did someone forward you this email? Click here to subscribe to this Benzinga newsletter and more.
TODAY’S MOST VOLATILE STOCKS
TODAY’S TOP STORY
Briefly: Optimism is growing that the DEA will reschedule marijuana from its onerous position as a Schedule 1 drug. (See what I did there?) And cannabis stocks are sparking up in response.
What Happened: Doug Kass, world-renowned hedge fund manager, posted on X that the “DEA will approve a rescheduling of cannabis to Schedule III.”
Specifically: "We have learned yesterday that the U.S. Drug Enforcement Administration will shortly approve a rescheduling of cannabis to Schedule III," Kass said today on the social media platform.
Why It Matters: At the moment, cannabis remains Schedule I alongside heroin and LSD, signifying no accepted medical value and high potential for abuse. Rescheduling would bump it down to Schedule III, placing it among anabolic steroids and Tylenol with codeine.
What Next: Kass advised selling a gap higher in cannabis stocks as a result of the rumored development.
PRESENTED BY NILEBUILT
The threat of climate change and increasing natural disasters are changing how we think about infrastructure. California has experienced a sharp rise in deadly wildfires, which contributes to the billions of dollars in annual property damage caused by wildfires in the US. This, coupled with economic concerns, is making it difficult for millennials to become homeowners.
However, companies like NileBuilt are addressing these issues by offering eco-friendly, fire-resistant homes that are self-sustainable and carbon-neutral. Traditional lumber construction is becoming less efficient and vulnerable to fire, while NileBuilt homes are non-combustible and exceed California's net-zero requirements. Their mission aligns with the younger generations' desire to minimize their carbon footprint, providing a solution for sustainable homeownership.
ONE TRADE IDEA FOR NEXT WEEK
Briefly: KeyBanc analyst John Vinh maintained an Overweight rating on chipmaker Advanced Micro Devices with a price target of $270.
The Numbers: The analyst said AMD grew modestly in February, as growth in its flagship CPU series Genoa remained strong.
Bullish Target: Vinh’s price target for AMD of $270 is 30x his 2025 EPS estimate of $9.05.
Big Picture: The latest cloud tracker data suggest a moderately positive outlook for AMD and a neutral impact on ARM, Intel and NVIDIA.
Click here to read the full report.
PRESENTED BY NILEBUILT
The threat of climate change and increasing natural disasters are changing how we think about infrastructure. California has experienced a sharp rise in deadly wildfires, which contributes to the billions of dollars in annual property damage caused by wildfires in the US. This, coupled with economic concerns, is making it difficult for millennials to become homeowners.
However, companies like NileBuilt are addressing these issues by offering eco-friendly, fire-resistant homes that are self-sustainable and carbon-neutral. Traditional lumber construction is becoming less efficient and vulnerable to fire, while NileBuilt homes are non-combustible and exceed California's net-zero requirements. Their mission aligns with the younger generations' desire to minimize their carbon footprint, providing a solution for sustainable homeownership.