Row 8594

Content Data

This page contains data entry 8594 from the Axioma AXP content repository. The structured data below represents the complete record for this entry.

Raw Record

{
  "text": "**What is happening?**\n\n*  The Biden administration is pushing cannabis reform. Millenials and Zoomers are drinking less and using more Cannabis. [Reference 1](https://www.newswire.ca/news-releases/millennials-generation-x-and-gen-z-are-all-unanimous-in-their-position-to-legalize-marijuana-827446897.html) | [Reference 2 ](https://www.bloomberg.com/news/newsletters/2022-05-31/gen-z-prefers-marijuana-or-shrooms-to-alcohol)\n* In August 29, 2023, The Department of Health and Human Services (“HHS”) recommended that DEA reschedule marijuana to Schedule III. [Reference](https://www.icemiller.com/thought-leadership/hhs-releases-unredacted-recommendation-to-move-marijuana-to-schedule-iii-seven-key-takeaways)\n* The DEA has just published an NPRM (Notice of Proposed Rulemaking) to re-schedule Cannabis from a Schedule 1 substance (no accepted medical use, high potential for abuse) to Schedule 3 (Accepted medical uses, low potential for abuse). [Reference](https://www.justice.gov/opa/pr/justice-department-submits-proposed-regulation-reschedule-marijuana) | [Actual document](https://www.dea.gov/sites/default/files/2024-05/Scheduling%20NPRM%20508.pdf)\n\n  \n\n\n**What are the consequences of this?**\n\n*  If moved to Schedule 3, although **NOT** federally legal, section **280E of the IRS code no longer applies**. This means companies will be able to **DEDUCT EXPENSES ON THEIR TAXES**. This is not an assumption, this is on page 89 of the document linked above. This has potentially massive Free Cash Flow implications for these companies. [Reference 1](https://www.reddit.com/r/weedstocks/comments/16bhzeq/impact_of_no_280e_on_fcf_for_msos/) | [Reference 2](https://twitter.com/WeedStreet420/status/1699107287636291873?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1699107287636291873%7Ctwgr%5E7393da30a92b2239ff6ff31a41fd3334e1588758%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fwww.redditmedia.com%2Fmediaembed%2F16bhzeq%2F%3Fresponsive%3Dtrueis_nightmode%3Dfalse) | [Forbes article from March](https://www.forbes.com/sites/danielmayo/2024/03/04/cannabis-tax-frenzy/?sh=37f0a1c43663)\n\nhttps://preview.redd.it/s7bykozrze1d1.png?width=1162&format=png&auto=webp&s=8c4d5ffe4eb4553c07c692a23c59c070cab577db\n\n\n\n**DESPITE NOT BEING ABLE TO DEDUCT EXPENSES IN THEIR TAXES**:\n\n* GTI had Free Cash flow of 6.6 Million three quarters ago.\n* Free Cash flow of 34.6 Million two quarters ago.\n* Free Cash Flow of 69.3 Million last quarter.\n* GTI is profitable with Earnings Per Share (EPS) of $0.33 three quarters ago\n* EPS of 0.05 two quarters ago\n* EPS of 0.15 last quarter\n* $223 Million in Cash versus $175 Million in current liabilities as of last Quarter\n* [GTI Financials - Yahoo Finance](https://ca.finance.yahoo.com/quote/GTII.CN/financials)\n* GTI is buying back $100 Million dollars worth of its shares, $40kk down $60kk to go. [Press Release (under Capital Allocation)](https://investors.gtigrows.com/investors/news-and-events/press-releases/press-release-details/2024/Green-Thumb-Industries-Reports-Fourth-Quarter-and-Full-Year-2023-Results/default.aspx#:~:text=In%20September%202023%2C%20the%20Board,million%20shares%20for%20%2439.9%20million)\n* GTI is the top holding of the AdvisorShares Pure US Cannabis ETF at 23.39% of holdings as of last Friday - [Reference](https://twitter.com/junglejava1/status/1791611842000802146)\n* GTI is diversified across the US, operating 20 manufacturing facilities, 92 open retail locations and operations across 14 states.\n* GTI has arguably the best branding and online presence amongst its peers. Look at their [website](http://gtigrows.com) and [Instagram](https://www.instagram.com/gtigrows)\n\n \n\n**What are some risks and common misconceptions regarding the move to Schedule 3 and GTBIF?**\n\n* Contrary to popular belief, the move to Schedule 3 **does NOT open the door to credit card transactions and large institutional capital** (Big banks) - [Reference](https://www.morningstar.com/news/marketwatch/20240518248/card-payments-remain-a-challenge-for-legal-cannabis-as-major-banks-avoid-the-sector-changing-classification-wont-help)\n* For the same reason, it is uncertain and unlikely the move to Schedule 3 could mean uplisting. I don't need to tell you that uplisting would be an insane surge of volume going from the CSE to the NYSE or NASDAQ.\n* Ben Kovler, the CEO, is a bit unhinged on [Twitter](https://twitter.com/Bkov9), for better or worse. ",
  "label": "r/wallstreetbets",
  "dataType": "post",
  "communityName": "r/wallstreetbets",
  "datetime": "2024-05-19",
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}

Entry Information

• Entry ID: 8594
• Repository: Axioma AXP
• Dataset: arrmlet/reddit_dataset_36
• Total Entries: 100,000