CURALEAF HOLDINGS INC Stock Forum

The Biden administration's positive remarks and potential reclassification of cannabis have sparked sector buying. The possible removal of 280E restrictions could greatly benefit cannabis firms financially, as shown by Curaleaf's potential annual savings of $150 million.

Analyst Aaron Grey sees potential cash flow benefits for cannabis companies from reclassification, aiding balance sheets, capital expenditures, or M&A. However, Nadine Sarwat suggests producers and investors would prefer a full de-scheduling and commercial model like alcohol.

The legal growth of recreational marijuana presents investors with an opportunity to profit from a new economy, while also hinting at the shifting attitudes towards cannabis usage in the United States.

A surge in shares of cannabis companies has saddled short sellers with more than $105 million in losses this year, but that hasn’t stopped traders from betting against the sector.
In the last 30 days, short sellers have plowed $91 million into new positions betting that pot stocks will decline despite the paper losses, according to a report from S3 Partners LLC. The contrarian trades are taking place as cannabis companies are rising on hopes th...