TDR’s Diamond Hands Podcast #4: The Three Scenarios That Could Signal Bottom In MSOS

In TDR’s Diamond Hands Podcast #4, we speak exclusively with Lead Financial Writer Benjamin A. Smith with Anthony Varrell off this week. On the agenda: analysis of what it’s going to take for the cannabis benchmark exchange traded fund, AdvisoShares Pure US Cannabis ETF (MSOS), to find bottom.

Now down 41.89% on weekly closing basis since the second week in February, the long descent down has been brutal. Despite a solid earnings season, continued strong fundamentals and persistent M&A action (both public and private) dotting the landscape, price has continually suffered. To exemplify the counter-intuitive nature of the decline, we highlight how strong sequential sales have performed over the past six quarters (ex-Canopy Growth).

In many cases, growth is growing triple-digits year-over-year and many Tier-1/2 multi-state operators are EBITDA positive.

However, fundamentals have taken a back seat to other factors in recent times, as we discuss in further detail. We also discuss the three most likely scenarios that could bring about a near-term bottom. Building base support is the likely first step needed towards changing the overall trend.

Episode #4 CliffsNotes…


@ 1:31-4:51 The reason for the decline in  MSOS  has little to do with fundamentals, but rather, a negative feedback loop where negative performance begets forced selling.

@ 4:52-6:30 Talk about the low premium afforded to Gage Growth by TerrAscend and how this has adversely affected market sentiment.

@ 6:30-9:31 The three scenario which could signal the bottom of the market and set the stage for bottom base support. As well, the scenario in which the market could form a “V” bottom.

@ 9:32-12:15 The market is not trading on fundamentals right now. Negative sentiment created by analyst note and California oversupply news.


@12:23-14:44 Slow start in the psychedelic market after Labor Day, however price action inline with peer and broad market price action. COMPASS Pathways demonstrating outperformance of late.

@14:45-18:15 Commentary of Revive Therapeutics, multi-faceted mode of action versus Big Pharma antival oral drugs. Lobbyist news moved stock ~23% last week.

For the weekly Diamond Hands Podcast stock picks, please tune in until the end.

To view Diamond Hands Podcast Episode #3, click here.

The Dales Report Inc. disclosure policy applies to this post    
You might also like

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More