May 17, 2021

Favorite Weed Stocks of MSOS Cannabis ETF Portfolio Manager

Midas Letter
Midas Letter
Favorite Weed Stocks of MSOS Cannabis ETF Portfolio Manager

Dan Ahrens, the Portfolio Manager of the AdvisorShares Pure US Cannabis ETF (NYSEARCA:MSOS), literally wrote the book on investing in Cannabis. His 2020 election-day published book is titled exactly that: “Investing in Cannabis” [disclaimer: no affiliation] We believe the U.S. players (MSOs) have a significant economic moat and will provide shareholders considerable value in the future. Working in one of the most informed positioned to provide expert analysis on that thesis, Dan sits down with James West to discuss his favourite US weed stocks.

AdvisorShares launched MSOS in September seeing a share price increase of over 60% since then. MSOS is an actively managed fund that is always important in such a fast-paced, rapidly changing area like cannabis. Being able to pick the right stocks is very important as we have seen with the disconnect between education about the US vs Canada financials.

There was a big runup in cannabis company valuations after the elections as investors anticipated federal legalization, but as that reform seems to have been put on the backburner of government efforts, weed stocks have seen a pullback in recent months.

But, even if nothing changed in terms of reform and regulation, it doesn’t change the fact that a lot of US operating cannabis companies are operating in a very financially sound manner and are poised to continue to grow.

The fact that more and more states will come online in the future is more of a bonus for the largest MSO stocks. New York is a prime example – a state which is slated to become the largest cannabis market in the world ahead of California.

“New York is just one state. Companies are already operating profitably, their growth metrics are fantastic, and with the current pullback multiples are looking more attractive” – Dan Ahrens

On top of more states joining the “green rush”, there are plenty more catalysts ahead for shareholders in the US cannabis industry. When the government passes safe banking, there is 280E reform, and when companies can up-list to the NYSE, US companies could see plenty of upside.

Watch the full interview for a thorough understanding of the US cannabis investing space and the best US MSO weed stocks to look into.

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