MSOS Has Crashed But May Rebound
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The AdvisorShares Pure US Cannabis ETF (MSOS) has dropped 65% over the past year, affected by Florida's failed legalization vote and MJUS liquidation. The ETF is poorly diversified, with top holdings making up 70% of the fund. Potential redemptions could add pressure, but changes in 280E taxation might offer a rebound opportunity.
January 13, 2025 | 1:00 am
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AdvisorShares Pure US Cannabis ETF (MSOS) has seen a 65% decline over the past year, driven by Florida's failed legalization vote and MJUS liquidation. The ETF's lack of diversification, with top holdings comprising 70% of the fund, raises concerns. Potential redemptions could further pressure the ETF, but changes in 280E taxation might improve financials and sentiment, offering a possible rebound.
The significant decline in MSOS is attributed to external factors like Florida's vote and MJUS liquidation, as well as internal issues like poor diversification. The potential for redemptions adds further downside risk. However, the possibility of eliminating 280E taxation could improve the financial outlook and investor sentiment, offering a chance for recovery.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100