It had been a long descent lower for AdvisorShares Pure US Cannabis ETF (MSOS), but this week’s news provided something for investors to rally around. After losing about a quarter of its value in the weeks since Senate Majority Leader Chuck Schumer introduced his comprehensive Cannabis Administration & Opportunity Act (CAOA)—which many considered to be too ambitious to receive sanction from Senate lawmakers—cannabis reform could be getting back to basics. With the House voting to attach SAFE Banking provisions as part of the National Defense Authorization Act (NDAA), SAFE has a chance of becoming law before the year is out.
The U.S House of Representatives passed by voice vote an amendment adding the Secure and Fair Enforcement (SAFE) Banking act to the National Defense Authorization Act (NDAA) earlier this week. SAFE has passed the House five times since, only to stall in the Senate, but this time might be different since it is attached to must-passed legislation and lawmakers are hesitant to block the 1,700 page NDAA for a simple banking bill with bipartisan support.
TDR contributor Anthony Varrell and Lead Financial Writer Benjamin A. Smith explore this topic in-depth and its impact on the sector going forward. MSOS ETF is the main focus.
We also speak with Cybin CEO Doug Drysdale, who made a guest appearance to this week’s program.
While most psychedelic sector stocks have decreased on a year-to-date basis, Cybin has bucked the trend, rising 54.66% so far in 2021. Certainly, high investor visibility has been a main contributor in the outperformance, as Doug notes that seven investment banks—including six in the U.S.—have initiated coverage on Cybin to date. Doug also shares his excitement for upcoming COMPASS Pathways Phase 2b endpoint results due next quarter, and what he is looking for in the results.
For the weekly Diamond Hands Podcast stock picks, please tune in until the end.
To view Diamond Hands Podcast Episode #5, click here.