Several Stocktwits users flagged bullish signals, and the buzz further surged following a late Friday report hinting at significant upside for the U.S. cannabis sector.
Canadian cannabis producer Village Farms International (VFF) was at the top of retail investors’ radars last week, with message volume for the company’s shares on Stocktwits rising 1,300%, the highest in the consumer sector.
The bump is notable as the company is scheduled to report its quarterly earnings before Monday’s market open. Several Stocktwits users flagged bullish signals for VFF, and the buzz further surged following a late Friday report hinting at significant upside for the U.S. cannabis sector.
The Wall Street Journal reported that President Donald Trump is considering reclassifying marijuana as a less dangerous drug. Citing sources and Trump’s reported talks with industry leaders, including Trulieve CEO Kim Rivers, at a recent fundraiser, the report also said he would advocate research into marijuana’s medical potential.
“Word is out. Gap up Monday morning. Trump pump,” said a Stocktwits user.
Another user noted that AdvisorShares Pure US Cannabis ETF (MSOS), one of the primary ETFs that tracks cannabis stocks, purchased shares in VFF last week.
Trump’s reported view centers on whether marijuana should be reclassified as a Schedule III drug, which wouldn’t make the drug entirely legal but would ease restrictions on it.
While marijuana is legal in many U.S. states, it is still illegal at the federal level. Lawmakers remain deeply divided when it comes to marijuana legalization, while newly appointed DEA Commissioner, Terrance Cole, has signaled a willingness to review marijuana’s federal classification.
That comes after a particularly weak stretch for cannabis companies. The AdvisorShares Pure US Cannabis ETF, widely regarded as the benchmark for U.S. marijuana equities, has declined by 86% over the past five years, while companies have diversified to survive. Tilray Brands (TLRY) expanded to the craft beer and beverage alcohol segments, while Canopy Growth (CGC) is focusing on health and wellness offerings.
Village Farms, while much smaller than its rivals with a market capitalization of just under $195 million, is growing strongly. VFF shares are up 123% year-to-date.
In June, the company completed the spin-off of its greenhouse fresh produce division, which includes some of its farm assets in Texas, to a holding company backed by private equity investors. The company is said to have received $40 million in cash and a 38% stake in the resultant entity, Vanguard Food.
The same month, Village Farms said it had regained compliance with Nasdaq’s minimum share price requirement.
As of the last reading, the retail sentiment for VFF was ‘bullish.’
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