CBD Denver Inc (CBDD)

[36Knuckle]

The sector continues to be in a holding pattern waiting for something to happen in Washington. In the meantime it continues to trade like an emerging sector with higher volatility than the market and worse performance due to challenges with new investors entering the sector. We are continuing to watch Senator Schumer's comments closely over the next few months to see if the catalyst the industry desperately needs could be on the horizon.

Poor performance of cannabis stocks recently is underpinned by waning interest in the sector judging by the falling volume in the world's largest cannabis ETF. Average volume is down 50% from the high in late 2021, though increased last week in a very negative tape.

We use cannabis ETF volume as a proxy for retail investor interest in the sector. Rising volumes would be a confirming indicator that investor interest is returning to the cannabis sector.

"Grizzle" 5-10-22