This is the one spot you want to park your money in for 2021…
To make the most money in cannabis investing this year, all you need to remember are three little letters: MSO.
MSO stands for “multistate operator,” which is a term that refers to a company that sells cannabis across the United States.
They’re the biggest moneymaking opportunities you can take advantage of right now because America is THE cannabis market.
Legal global cannabis sales reached $15 billion in 2019, and U.S. sales accounted for $13.6 billion of that amount. Do the math, and you’ll see that 90% of all legal sales are flowing through America.
And we’re just getting started.
In just four years, data specialist New Frontier Data projects U.S. sales will reach $41.5 billion.
As you can see from the graphic above, Michigan, Florida, and Illinois are respectively projected to capture 7% and 8% slices of the cannabis sales pie.
And the best companies need to be everywhere their customers will be – across multiple states.
Sure, Trulieve Cannabis Corp. (OTC: TCNNF) might already sell 50% of the cannabis in Florida. But in order to grow a real empire, CEO Kim Rivers knows that she needs Trulieve dispensaries across the country. It’s why she expanded operations to California, Connecticut, Massachusetts, and Pennsylvania.
So, today, we’re not just going to show you why multistate operators are your easiest way to make money in cannabis – we’re going to give you three of the top three MSO investments you can make right now…
Invest in MSOs and Watch Your Money Grow
With 30 retail locations, 3 cultivation sites, and 4 manufacturing facilities across California, Illinois, Ohio, Pennsylvania, and Virginia, Jushi focuses on being the biggest fish in any pond.
When only five licenses were available for vertically integrated companies to operate in Virginia, Jushi was quick to secure one of them.
It now has the exclusive right to operate in the state’s most coveted region – Northern Virginia – which is home to 28% of the state’s population and covers several bustling cities near Washington D.C., including Reston, Fairfax, and Arlington.
When only three dispensaries were allowed to meet the demand for cannabis in Santa Barbara, California – a city of 90,000 where the median income is as high as $87,000 and more than 7 million tourists spend close to $2 billion (before COVID-19) – Jushi snagged one of those licenses, too.
Then, we have Curaleaf, which operates 97 dispensaries, 23 cultivation sites, and 30 processing sites across 23 states for an expansive footprint will help the company reach its goal of bringing cannabis to the masses.
CEO Joe Bayern said on an earnings call that only 5% to 7% of American households consume cannabis, and that means Curaleaf is positioned to “address the roughly 93% to 95% of consumers yet to experience cannabis.”
So, your top two MSOs to own in 2021 are Jushi and Curaleaf.
But there’s also a third unique opportunity for you to profit from MSOs that I’m going to show you today…
Owning the Top U.S. Operators in One Spot
You’ll make more money owning individual stocks than you will by owning a basket of them through an exchange-traded fund (ETF), and that’s because ETFs that are just tracking an industry can be filled with both good and bad stocks.
But if you’re a new investor looking to dip your toes into cannabis, are more risk-averse, or would like to own the top MSOs all through one investment vehicle, the AdvisorShares Pure Cannabis ETF (NYSE: MSOS) could be the perfect fit for you.
Now, what you need to know about ETFs is that these are funds that own a basket of stocks, commodities, or bonds that allow investors to have broad access to a bunch of companies in a given sector. They can be bought and sold throughout the day, just like individual stocks.
But MSOS is unique compared to other cannabis ETFs because it holds the top operators in the U.S. as opposed to ETFs that own Canadian companies, medical companies with vague ties to cannabis, and pick-and-shovel plays.
Take a look at MSOS’s top 10 holdings by portfolio weight, below. All of these are names our NICI Membership subscribers will surely recognize.
In fact, I just sat down with the portfolio manager of MSOS, Dan Ahrens, for a one-on-one interview that will be hitting NICI Membership inboxes this week.
Until then, if you want to learn more about any of the opportunities we talked about above, you can access our The 3 Best Cannabis Investments to Make in 2021 dossier for free as a member of the National Institute for Cannabis Investors.
And if you’re ready to dive into even more stock picks to boost your portfolio this year, I made sure you also have free access to my colleague’s complete list of the best and works stocks to buy for 2021 right here.
Executive Director, National Institute for Cannabis Investors
11 responses to “MSO: 3 Little Letters That Will Make You the Most Money in Cannabis Investing”
February 02 2021