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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
We continue to get positive signals out of Washington, D.C. for cannabis companies.
Cannabis stocks on Monday traded as if president-elect Donald Trump has abandoned his marijuana reform policies.
Elections delivered a body blow to the cannabis sector as investors seemingly forgot President-elect Trump’s support for positive reform.
The cannabis sector is taking a severe body blow because of election outcomes.

The big negative: Florida voters rejected Amendment 3, which would have legalized recreational use. Voters in North Dakota and South Dakota also rejected cannabis legalization.
Cannabis is a high-profile issue in the upcoming elections, and today we’ll explore three potential election scenarios and how they’ll affect cannabis stocks.
Given that the majority of Americans on both the left and the right favor cannabis legalization, it’s no surprise that marijuana has emerged as a significant campaign issue.

Therefore, it makes sense to think about election outcome scenarios and what they mean for cannabis investors.

Big picture, no matter what happens in the presidential election, cannabis wins. That’s because both candidates support major cannabis reform in one way or another. But obviously, some outcomes are better than others. Here are the three main scenarios, from best to worst.
A barely noticed change to the DEA’s rescheduling criteria makes rescheduling more likely and could be a bullish development for marijuana stocks.
Cannabis is enjoying its highest profile ever as an election-year issue, and that presents cannabis investors with a great medium-term buy signal.
Cannabis now has its highest election-year profile ever.

Both presidential candidates have highlighted their favorable positions on cannabis reform, obviously because voters in all the key swing states favor reform. Cannabis reform appears on the ballot in referenda in several states – most notably Florida.
A geeky development in a key Drug Enforcement Agency (DEA) test (plus overwhelmingly negative sentiment) tells me that cannabis stocks are again a strong buy.
At the end of August, the cannabis sector had its worst week in years, but the fundamentals paint a much brighter picture.
Cannabis investors remain in a depressed state, despite several potentially bullish developments that could move stocks in the sector up significantly over the next year.
Election season is underway, and now both candidates are fully on the side of cannabis investors. Here are the four reforms that make cannabis a strong buy now.
Back on August 28 and September 3, I suggested buying cannabis stocks in the severe weakness that put a lot of cannabis investors in a deeply distressed state. I cited the excessive negativity and the potential for a bullish update from presidential candidate Donald Trump on his cannabis policy.

On September 9 we got the Trump update, and it was very bullish for the sector. Cannabis stocks moved up sharply.
On Tuesday morning I suggested traders might want to take some profits in positions accumulated the week before, because of a possible dearth of catalysts on the near-term horizon. I also suggested maintaining long-term exposure to the group.
Back on August 28 after the close, I shared bullish commentary on the cannabis group which was melting down at the time.
Few sectors are as affected by politics as cannabis, and the upcoming presidential election could have significant implications for cannabis stocks.
Cannabis stocks have had their worst week in years following the DEA’s updated rescheduling timeline; here are the five most important takeaways for investors.
Talk about a terrible week for cannabis investors. The Drug Enforcement Agency (DEA), on Monday, torpedoed the sector by announcing a move that will significantly delay favorable legal reform.

What happened: The DEA now wants to hold a formal hearing on the Biden administration’s proposal to reschedule cannabis, before deciding what to do. The move dashed all hopes of rescheduling before the election – which many analysts had expected – since the hearing is set for December 2.
Yesterday we learned that the Drug Enforcement Agency (DEA) has decided to hold an administrative law judge (ALJ) hearing on rescheduling cannabis. It is set for December 2.

The decision dashes all hopes of rescheduling before the election, sending cannabis stocks much lower.
The cannabis sector has a dream ticket with Kamala Harris and Tim Walz. Investors act like they haven’t even noticed. This seems like a big mistake.

The key takeaway: Cannabis stocks look buyable in the current bout of dramatic sector weakness. Cannabis investors are notoriously bipolar. Right now, they are in a dark mood. That’s usually been the best time to add to positions, especially when there are potential catalysts on the horizon like now. In today’s update, I outline the main ones and the possible timing.
Cannabis reform is likely to be front and center in the lead-up to the election, yet investors are ignoring what could be a cannabis “dream ticket.”
Cannabis is a highly politicized sector because it is extensively regulated.

The political news has been very good for cannabis. But cannabis investors have been slow to recognize this.

A late-July Fox News poll showed that Vice President Kamila Harris has caught up to and surpassed Donald Trump in five key swing states.

Cannabis stocks should have advanced on the news. Not only is Harris a better cannabis advocate than President Joe Biden, she’d obviously be more favorable to the sector than Trump.
Vice President Harris has caught up to Trump in the polls; here’s why that should move cannabis stocks higher.
Cannabis rescheduling is still a work in progress, but one insider believes a final rule before the end of the year is “very possible,” which could be major news for cannabis stocks. Here are my thoughts, and more on the timeline.
After rising sharply on good news earlier this year, cannabis stocks are again in the doldrums. But there’s a huge catalyst that could drive them much higher; here are our thoughts.
Old-school value managers like Benjamin Graham and Warren Buffett used to have a funny way of describing their investing style.

They said value stocks were like cigar butts on the sidewalk that had a few puffs left in them.

I’d like to offer an updated version of this metaphor. I think cannabis stocks have a few more puffs left in them between now and the end of the year.

Cannabis names are thoroughly unloved and abandoned once again.
Cannabis stocks are well off their 2024 highs, but investors are discounting four major catalysts that offer hope for the sector in the year ahead.
All the focus is on federal rescheduling, but these three state-level developments may be more important for cannabis investors and cannabis stocks.
Cannabis stocks are unloved and in the doldrums.

Typically, in the stock market, that’s the best time to buy.

Neglected stocks offer the best value, as long as there are potential catalysts on the horizon.

I believe that is the case with cannabis. You’ll just have to be patient. I think it is worth being patient for the possibility of 30%-50% gains when a catalyst strikes. There is no guarantee this will happen, but as I discuss below, the odds are good.