Cannabis Chart Of The Week: Has Trading Liquidity Improved For Marijuana Stocks?
Portfolio Pulse from Viridian Capital Advisors
The unredacted text of the HHS recommendation has boosted cannabis stock prices, with the MSOS ETF rising 27% over the last month. Despite this, trading liquidity for marijuana stocks remains a concern. U.S. MSOs have seen an increase in average daily dollar trading volume to $21M, but this is still below the $41M peak after the HHS announcement. The days-to-trade market cap has improved but remains high at 474 days, indicating illiquidity and a barrier to institutional investment. Canadian LPs, despite a smaller market cap, have significantly higher trading volumes. The article suggests that rescheduling alone won't solve liquidity issues without additional regulatory changes.

January 22, 2024 | 8:21 pm
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POSITIVE IMPACT
The MSOS ETF has experienced a significant price increase of 27% over the past month, likely due to the positive sentiment from the unredacted HHS recommendation. However, concerns about trading liquidity and market accessibility for institutional investors may temper gains in the short term.
The MSOS ETF's recent price increase is directly tied to the positive news from the HHS recommendation, which is likely to continue supporting the ETF's price in the short term. However, the article highlights liquidity issues that could limit further upside potential and attract institutional investors, which may create some resistance to the ETF's continued growth.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 100