The U.S. cannabis market presents a significantly skewed risk-reward opportunity, particularly within the realm of multi-state operators (MSOs). As explained by author Chris Ingrassia in Todd Harrison’s “Cannabis Confidential” newsletter, the recent price actions have left many investors bewildered, especially in the wake of the proposed rescheduling of cannabis under the DEA’s Controlled Substances Act from Schedule I to Schedule III.
U.S. MSOs: Evaluating The Investment Thesis
Why Add U.S. MSOs To Your Investment Portfolio?
Ingrassia goes over several key questions investors should ask themselves when evaluating U.S. MSOs. The first and foremost is whether these entities, despite the volatile price action, merit inclusion in an investable universe based on current investment criteria. Given the expansive growth potential, the answer leans towards yes.
Public sentiment towards cannabis has shifted dramatically, with 70% of Americans now in favor of legalization, a significant rise from approximately 45% in 2010. This growing acceptance is mirrored in the increasing number of states legalizing both medical and adult-use cannabis, fostering a rapidly expanding market. This shift is not only due to the plant’s benefits but also the relatively low risks it poses.
Well-established U.S. MSOs, such as Green Thumb Industries (OTC:GTBIF), Curaleaf (OTC:CURLF), Trulieve (OTC:TCNNF),
