Investor interest in the cannabis industry is heating up again, thanks to reports that the Drug Enforcement Administration (DEA) is reviewing a recommendation to reschedule marijuana to a Schedule III drug. If the DEA does reschedule the drug, it would be a major fundamental win for cannabis companies in terms of taxation, labor, research, and more.
In particular, U.S. cannabis companies that are multi-state operators (MSOs) are primed to benefit substantially from increased federal clarity on marijuana. Many of these “pure play” cannabis stocks are priced under $5 per share and trade over the counter - which means they're somewhat more speculative and risky, but there's also substantial growth potential for investors who can stomach that risk.
