The cannabis industry seems to be sharing collective hopes Friday that this time the rumors of federal descheduling are true, which has got weed stocks hitting the roof with speculation.

What Happened: Doug Kass, world-renowned hedge fund manager, posted
on X, formerly Twitter, Friday that the “DEA will approve a rescheduling of cannabis to Schedule III.” 

“We have learned yesterday that the U.S. Drug Enforcement Administration will shortly approve a rescheduling of cannabis to Schedule III,” Kass said in part of his first tweet on the subject Friday. He advised selling a gap higher in cannabis stocks as a result of the rumored development.

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Kass then posted a video on X of Sen. Cory Booker’s response Thursday when asked what he’s heard about the DEA’s rescheduling of cannabis.

“I have heard a lot about it,” Booker is seen saying at the U.S. Capital before a person asks “April 15?”
Booker then said: “I do not want to comment on that.”

The person exclaimed “Am I warm?” To this, Booker said “yes” and then joked about rescheduling possibly taking place on 4/20.

As cannabis stocks posted earnings this week, some were up slightly and most were barely hanging on. New Cannabis Ventures called it “another rough one for MSOs,” referring to multi state operators, adding that it came as no surprise.

“Another Tier 1 name reported, the fifth of five companies, and the four Tier 2 companies reported as well. Through Thursday’s close, the New Cannabis Ventures American Cannabis Operator Index has declined 6.9% and was now down 16.4% so far in March,” wrote New Cannabis Ventures on Friday. “It is up 6.4% year-to-date. While the performance has slipped recently, it’s still better than for other sectors.

The NCV Global Cannabis Stock Index was down 0.2% year-to-date through 3/14.

The AdvisorShares Pure US Cannabis ETF (NYSE:MSOS) was up 8.94% at $8.41 at the time of publication Friday morning.

Illustration made using Pixabay photo.