Every few months, I come across someone sharing a bullish outlook on $MSOS, but the comments section always seems to be filled with negativity.
The ETF’s underlying holdings, like Trulieve and Green Thumb, which account for nearly 40% of its portfolio, are fundamentally strong. Both companies have shown steady EBITDA growth and have maintained their earnings, even in a volatile market. Yet, despite their solid performance, their stock prices haven’t caught up.
Right now, both companies are trading at multiples around ~7, which feels undervalued considering their consistent performance. It’s puzzling why the market isn’t recognizing this value.
Much of the bearish sentiment seems to be driven by concerns about “politics” and “state regulations.” But let’s be real—states that have legalized recreational cannabis aren’t likely to reverse course. In fact, revenues should continue to rise as more states follow suit. The demand for cannabis isn’t disappearing; if anything, I expect it to grow as the industry matures.
I have an image from Koyfin showing the EBITDA and historical price for each company. Not sure if links are allowed but I'll post one as a comment just in case.
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