The Highlights
The US cannabis MSOS ETF fell for the fourth time in the last five weeks. MSOS finished -8.68%, while the global YOLO ETF finished -7.99%. YTD, MSOS is +19.64% and YOLO is +10.59%. MSOS hit a 52-week high on February 6 at $10.64 and has since fallen 23.87%. Interestingly, since February 6, the fund has received $77.13 million in inflows. Weaker prices across cannabis have come in the face of relatively strong earnings and encouraging political commentary. While the timing of the DEA’s response to the HHS recommendation remains uncertain, we don’t feel the probabilities of Schedule III have changed. Perhaps fairly, cannabis has become the ultimate show-me story. In his State of the Union address, President Joe Biden made a rare mention of cannabis. When speaking about initiatives with guns, police reform, and domestic violence, he included, “directing my cabinet to review the federal classification of marijuana, and expunging thousands of convictions for the mere possession, because no one should be jailed for simply using or possessing marijuana.” President Biden’s tweet saying “No one should be jailed just for using or possessing marijuana” was the most popular post from the State of the Union. It has received more than 14 million views and 104,000 likes on X. His second-most popular tweet that night was about taxing billionaires, which received 10 million views and 74,000 likes. Cannabis is clearly a popular subject and may continue to be used to mobilize and sway voters. BDSA updated its five-year forecast. US sales totaled $29.5 billion in 2023 and are expected to grow to $32.4 billion in 2024. The total US industry is forecast to grow at a 9% CAGR for 2023-2028, with 2028 sales forecast to reach $46 billion. The report went on to highlight that while sales outside the US and Canada remain relatively small, international markets are growing quickly. BDSA estimates sales ex-US and Canada were just $2.4 billion in 2023, but forecasts sales to grow at a CAGR of 24% through 2028, reaching $7 billion. Curaleaf (TSX: CURA, OTCQX: CURLF) and MariMed (CSE: MRMD, OTCQX: MRMD) reported earnings this past week and we’ll dig into those results on the following pages.
Water Tower Research is built on the foundation of democratizing information flow. We bridge the growing information gap between companies and investors through our investor engagement strategies and open-access research platform.
Our research analysts are Wall Street veterans with the experience and knowledge to work with companies and investors in tandem. We provide access to the information and content that anchors the due diligence process for both professional money managers and individual investors. We leverage traditional research distribution channels and the best of modern digital strategies and tactics to amplify this information flow globally to engage all categories of investors and stakeholders.
Information flow is the foundation for creating investor awareness, knowledge, and engagement. Our mission is to help companies and investors have the tools they need and achieve their goals.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.