Why Green Thumb Industries Stock Stumbled Today

Key Points

• Many marijuana industry figures don't feel de facto legalization is in the cards anytime soon.

• In a just-released poll, two-thirds of them said such a move will not occur this year.

• 10 stocks we like better than Green Thumb Industries ›

The gloomy results of a new poll weren't infusing marijuana stocks with much optimism on Wednesday. Among the sector's decliners in the trading session was Green Thumb Industries (OTC: GTBIF), which swooned by more than 7% in value, on a day when the S&P 500 index landed in positive territory with a 0.5% increase.

Low chances for 2025 rescheduling?

A company called Shield Compliance, which concentrates on compliance management for financial institutions that serve the pot sector, released its 2025 financial services survey Wednesday.

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Image source: Getty Images.

Although it was geared more toward the financial aspects of the business, it did pose the major question of our age to (and for) cannabis companies -- if marijuana is rescheduled (effectively, legalized), when will this happen? Specifically, Shield Compliance asked respondents in the business what the chances were that rescheduling could occur by the end of this year.

Those polled were asked to rate these chances on a scale from 0 (not at all) to 100 (certainly). On average, the 88 people answering the question put the odds at 34.

Legalization high needed

At least there's little doubt as to how much this kind of move would help the cannabis industry. In another question, whether rescheduling, and the tax relief measures that should derive from it, was crucial to the business's long-term viability, a full 97% answered that it was at least "somewhat important." More than 61% of respondents ticked the highest category, "extremely important."

While there is much public support behind marijuana law reform in this country, the strict federal statutes governing the drug's sale and consumption have been in place for decades. As such, there is natural inertia not to change them. Until they do see a shift, we can fully expect pot companies like Green Thumb to continue to struggle.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool recommends Green Thumb Industries. The Motley Fool has a disclosure policy.