The trading volume of a stock reflects the number of shares bought and sold within a given time. This is called liquidity. The term is used because it likens the ease of converting assets to cash to the fluidity of water. Why is this important for cannabis stocks?
Four lesser-valued cannabis stocks showed positive performance on Monday, defying the broader sector's downtrend. These stocks—Medical Marijuana Inc., TILT Holdings, Trees Corp., and Village Farms International —present potential investment opportunities.
The Department of Justice (DOJ) confirmed that it has started the formal rulemaking process to reclassify cannabis to Schedule III. This significant step reinforces the positive outlook for cannabis stocks.
The Department of Justice reportedly planned to issue a notice of proposed rulemaking on Thursday that would reclassify marijuana to Schedule III after a 60-day public comment period. Major players in the marijuana industry, including Canopy Growth, Aurora Cannabis and Tilray Brands, shares rose Thursday on the long-awaited news, but the rally has since cooled.
Cannabis companies and advocates applaud President Biden's announcement to reschedule and legalize cannabis, calling it a major leap forward and opportunity to correct long-standing wrongs and improve the industry's cashflow.