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Michael Brush

Michael Brush

Chief Analyst, Cabot Cannabis Investor

Michael Brush is an award-winning Manhattan-based financial writer who writes a stock market column for MarketWatch. He is editor of Brush Up on Stocks, an investment newsletter. Brush previously covered the stock market, business and economics for the New York Times, the Economist Group, MSN Money, and Money magazine.

Brush attended Columbia University Business School (Knight-Bagehot Fellowship program), and the Johns Hopkins University School of Advanced International Studies (SAIS).

He is the author of Lessons from the Front Line (published by John Wiley), a book offering investing insights based on the experiences of leading professional money managers he’s met on the job.

Brush has received several awards for excellence in journalism including the Best in Business award from the Society of American Business Editors (SABEW), the American Society of Magazine Editors’ National Magazine Award for General Excellence in New Media, and awards for excellence in local news coverage in Pennsylvania, where he started his career.

From this author
The recent dip in Tesla (TSLA) shares due to the public fallout between Elon Musk and President Trump isn’t a cause for concern; it’s a buying opportunity.
Cannabis companies remain in hunker-down mode as challenges persist. Those include price compression, competition from hemp-based THC product sales, and uncertainty about potential federal reform.

Not all cannabis companies are going to survive. Ayr Wellness (AYRWF) looks like it is about to go under. I’ve only ever kept a very small position in that name, so the company’s demise did not cause too much damage.
As the market panicked in the midst of a correction, five indicators signaled that it was time to buy. Here are those signals, and what I’m buying now.
The Trump administration has been mostly mum on cannabis reform. But a new cabinet nominee could bring much-needed momentum to the sector.
The Senate Judiciary Committee recently approved the nomination of Terrance Cole to lead the Drug Enforcement Administration (DEA).

The full Senate may vote on Cole’s confirmation as soon as early June.

This could be the start of a significant turning point for cannabis stocks. That’s because Cole will address a Biden-era proposal to move cannabis to Schedule III from Schedule I under the Controlled Substances Act (CSA). The change would significantly enhance cannabis company cash flow by neutralizing an IRS rule that bars operating expense deductions against revenue from the sale of Schedule I substances.
Earnings season is wrapping up, and most marijuana stocks have reported. Here are the six key trends for the cannabis sector that emerged from the calls.
It’s cannabis company earnings season once again. Below, I summarize the highlights from our portfolio companies. But first, here are the major sector trends that emerged from the calls.
Cannabis stocks continue to post sharp rallies on rumors of progress on federal policy developments like banking reform and rescheduling. Then the stocks give it all back over the next day or two.

There are two ways to deal with this trend.
Multiple signs suggest that the bottom is in and that now is a good time to buy weakness. Here are the signals I follow closely and the best sectors to buy.
Cannabis reform remains bogged down in Washington and has taken a backseat to President Trump’s other priorities, but there are compelling reasons to buy low on cannabis.
Headlines have shifted investors to “risk-off” mode, but there are seven reasons to buy stocks more aggressively before the market goes “risk-on.”
It’s time to buy stocks more aggressively.

That’s the case for stocks in general, but also cannabis stocks. Most cannabis companies aren’t really affected by tariffs. But their stocks have been hit recently by the shift to “risk-off” mode among investors.
Cannabis stocks have struggled as the market awaits regulatory moves by the president, but a looming debt wall offers investors an overlooked opportunity.
February and early March triggered a rapid correction in U.S. equity markets, but these two bullish signs are signaling better times ahead.
Cannabis policy has taken a backseat to global trade in Washington, but these three bullish cannabis sector trends could push stocks higher.
The cannabis sector remains unloved as investors abandon hope that President Donald Trump will come through on his campaign promise to reschedule the drug.

Moving cannabis to Schedule III from Schedule I under the Controlled Substances Act would help cannabis companies by obviating an IRS rule that prohibits them from deducting operating expenses (Rule 280E).

I continue to think Trump will live up to his “promises made, promises kept” mantra. It will take some time, because he’s obviously active on many fronts, and cannabis reform does not rise to the level of top priority. Polls continue to show the majority of voters favor reform, particularly younger voters. So, there’s a favorable political angle for conservatives in cannabis reform. Cannabis sales growth continues to be particularly strong (6.2%) in Missouri, a red state.
Insiders at two of our Cabot Cannabis Plus Insider Portfolio names just made large purchases of their company’s stocks. Besides cannabis, I have followed insider activity overall for a few decades. These are significant buy signals, in my experience.
It’s cannabis company earnings season. So, I highlight fourth-quarter results in this issue.

Before we get to the details, here are the key takeaways from earnings reports:

* Price compression continues, creating an ongoing “Hunger Games” environment in which only the financially strong will survive, given the debt levels at a lot of cannabis companies. Much of this debt comes due over the next two years. Bankruptcies might be the clearing event that helps bring an end to price compression. None of our names appear to be at risk, but no guarantees...
The last two weeks have been challenging for investors, and there’s a case for more selling ahead, but some bullish signals are starting to emerge.
Cannabis investors need to practice patience while they wait for the next major sector catalyst, but they’re on the horizon on both the state and federal levels.
The cannabis sector’s “shadow lenders” offer rich yields to buoy the portfolios of cannabis investors should Trump’s “promises made” fall flat.
Are promises made really promises kept, for President Donald Trump?

No one really knows, so cannabis equity investors remain depressed.

They can’t get any bullish signals from the administration on rescheduling, which Trump promised.

But there is a way to deal with this uncertainty as a cannabis investor. Shift your focus to getting paid to wait. I’ll explain why, and how, below.
Despite the deep negativity swirling around marijuana stocks, one key lobbyist believes major cannabis reform remains on track in Washington, D.C.
These are dark days for cannabis investors, maybe the darkest ever.

AdvisorShares Pure U.S. Cannabis (MSOS), one of the key benchmark exchange-traded funds in the space, is down 85% in the past five years against market gains of 80%.

As has always been the case, the fate of cannabis stocks is much more about politicians than the leadership and results at cannabis companies.
Cannabis stocks ended 2024 on a down note, but 2025 will almost certainly be better. So I’m making a handful of cannabis calls for 2025, some of which could be quite bullish.
Progress on federal-level cannabis reform remains uncertain and demands patience from investors. In Cabot Cannabis Investor, we’re getting paid to wait.
As has been the case for the past decade, the fate of cannabis stocks lies largely in the hands of politicians.

Cannabis companies have been getting solid support from state-level politicians. Forty states now allow sales of medical cannabis.

Sure, they are permitting too many stores, and that is putting downward pressure on pricing. At some point, the market sorts that out. Prices will fall to a point where it is no longer that enticing to bring on new supply, yet companies will have gotten lean enough to produce profits. We are not there yet. But we will get there.
2024 was a rough year for cannabis investors, but 2025 could be much better. Here are my top eight predictions for the cannabis sector for the year ahead.
Here are my top eight predictions for the cannabis sector for 2025.

1. Cannabis rescheduling goes through

Promises made, promises kept. Trump loves a “deep state” challenge. Put these two together, and it seems probable that rescheduling could happen in 2025.
Cannabis stocks have declined sharply since the election, and while it may take some time for them to bounce back, there are still meaningful catalysts for cannabis in the years ahead.