Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Cannabis stocks rally on Senate committee approval of SAFER Banking Act

EditorRachael Rajan
Published 09/28/2023, 05:18 AM
© Reuters.

The stocks of Curaleaf Holdings (OTC:CURLF) Inc. and Trulieve Cannabis (OTC:TCNNF) Corp. experienced a positive surge this Wednesday, following the Senate Committee's approval of the Secure and Fair Enforcement (SAFER) Banking Act of 2023. The legislation, which has been repeatedly approved by the House and is now set for a full Senate vote, aims to provide legal cannabis companies with access to the financial system.

Curaleaf, with a market cap of 3.17B USD as provided by InvestingPro, has seen a significant price uptick over the last six months, which aligns with one of the InvestingPro Tips. Despite its declining trend in earnings per share, analysts predict that the company will be profitable this year. The company has also seen a strong return over the last month and three months, which is reflected in its 1 month price total return of 46.55% and 3 month price total return of 40.26%.

Senate Majority Leader Chuck Schumer has endorsed the Act, which has received support from both sides of the political aisle despite opposition from some quarters. Notably, Republican Senator Cynthia Lummis is among those backing the legislation, countering opposition from individuals such as Kevin Sabet.

Trulieve Cannabis Corp., on the other hand, despite operating with a significant debt burden as pointed out by one of the InvestingPro Tips, has also seen a strong return over the last month and three months, which is evidenced by its 1 month price total return of 89.33% and 3 month price total return of 70.20%. The company has a market cap of 1.2B USD and analysts predict that it will be profitable this year.

In a parallel development, the U.S. Drug Enforcement Administration (DEA) is contemplating a reclassification of cannabis under federal law. This potential move could remove the existing 280E tax restrictions imposed on legal cannabis firms, further fostering their growth and development.

The dual developments represent significant steps towards financial inclusivity for legal cannabis companies, which have long faced banking challenges due to federal restrictions. The approval of the SAFER Banking Act by the Senate Committee, coupled with potential changes in DEA policy, could significantly alter the landscape for these businesses moving forward. For more detailed insights, follow the InvestingPro Tips for Curaleaf and Trulieve.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.