Summary
MSOS Chart
MSOS: Pause On Cannabis Rescheduling - And Why Trulieve Is A Sneaky Pick
I reiterate my Buy rating on AdvisorShares Pure US Cannabis ETF despite the DEA pausing rescheduling hearings. MSOS remains attractive as the rescheduling catalyst is delayed, not canceled, and underlying holdings appear reasonably valued. Trulieve Cannabis Corp., MSOS's largest holding, stands out due to its Florida medical sales focus and normalized tax rates.
MSOS: Adult-Use Rescheduling The Next Catalyst For Cannabis Stocks
The AdvisorShares Pure US Cannabis ETF is rated a buy, driven by real regulatory progress and potential further catalysts. Rescheduling of medical cannabis to Schedule III reduces tax burdens, improving cash flows and the cost of capital for MSOS holdings. Upcoming DEA hearings on adult-use rescheduling and earnings reports could deliver upside surprises and further margin expansion.
The Easiest Way to Bet on US Cannabis Is This One ETF
Owning individual U.S. cannabis operators means wrestling with OTC-listed tickers, thin liquidity, and a patchwork of state licenses that most brokerage screeners barely index.
AdvisorShares Pure US Cannabis ETF Investors
| Name | Quantity | Cost | Value | Profit ($) | Gain (%) |
|---|---|---|---|---|---|
| BZ Brandon Zatopek Commonwealth Equity Services LLC | 170,585 | $866,569.99 | $695,986.8 | -$170,583.19 | -19.68% |
| JD Jim Dushek HARBOUR INVESTMENTS Inc. | 100 | $735.64 | $408 | -$327.64 | -44.54% |
| NA Nizar Araji National Bank Of Canada /FI/ | 14,191 | $68,658.84 | $58,466.92 | -$10,191.92 | -14.84% |
| CEA Craig Effron and Curtis Scoggin Management LP | 200,000 | $1.47M | $816,000 | -$650,000 | -44.34% |
| MB Mitchel Bialek Css LLC/IL | 177,200 | $676,645 | $689,308 | $12,663 | 1.87% |
AdvisorShares Pure US Cannabis ETF (MSOS) FAQ
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AdvisorShares Pure US Cannabis ETF Profile
| ARCA Exchange | US Country |
Overview
The fund operates as an actively managed Exchange-Traded Fund (ETF) with a specific focus on the marijuana and hemp industry in the United States. Its main investment strategy revolves around allocating at least 80% of its net assets, in addition to any borrowings for investment purposes, towards companies that obtain at least half of their net revenue from the marijuana and hemp sectors. These investments include securities of the mentioned companies as well as derivatives that possess similar economic characteristics. Furthermore, the fund places a significant emphasis on the pharmaceuticals, biotechnology, and life sciences industry group within the healthcare sector, dedicating at least 25% of its investments to this domain. It is important to note that the fund adopts a non-diversified investment strategy, meaning it may concentrate its assets in fewer holdings than a diversified fund.
Products and Services
- Marijuana and Hemp Company Securities
The fund invests in securities of companies primarily engaged in the marijuana and hemp industries in the United States. This forms the core of the fund's investment thesis, focusing on entities that derive a significant portion of their revenue from these sectors. This approach aims to exploit the growth potential within these industries by tapping into companies operating in various segments, including cultivation, distribution, pharmaceuticals, and ancillary services.
- Derivatives with Economic Characteristics Similar to Marijuana and Hemp Securities
Aside from direct investments in securities, the fund diversifies its approach by incorporating derivatives that share economic characteristics similar to those of marijuana and hemp securities. This includes, but is not limited to, futures, options, and swaps associated with the performance of companies within the marijuana and hemp industries. This strategy enhances the fund’s flexibility in navigating market conditions and capitalizing on investment opportunities.
- Pharmaceuticals, Biotechnology, and Life Sciences Investments
In alignment with its strategic focus, the fund commits at least 25% of its investment portfolio to the pharmaceuticals, biotechnology, and life sciences industry group within the health care sector. This dedication reflects a belief in the therapeutic and economic potential of marijuana and hemp within these advanced sectors, leveraging advancements in research, development, and commercialization of related products and services.
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