MSOS - MSOS: The Dominos Are Falling

2024-05-20 12:48:13 ET

Summary

• AdvisorShares Pure US Cannabis ETF invests in the cannabis industry through direct investments and derivatives.
• The top holdings of the ETF include Green Thumb Industries, Curaleaf Holdings, Trulieve Cannabis, and Verano Holdings.
• The industry stands to benefit greatly from the removal of the 280e tax obligation due to rescheduling from 3 to 1.
• The process of rescheduling has been in motion since late 2022 and is approaching completion.
• I presently rate MSOS as a Buy.

Thesis

With the federal government currently in the process of changing the laws around cannabis, companies in the industry in the United States are expected to receive tax relief and become more profitable. Investments in this industry have the potential to experience considerable alpha as markets adjust their outlook on the future of the industry....

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