Getting Even More Chai
I have substantially increased by exposure to cannabis in the last five trading sessions.
Should prices remain depressed, I expect to continue to add.
I am repeating this column from May that summarizes my constructive investment outlook for the sector (updates are bold-faced):
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8 Reasons I’m Getting More Positive on Cannabis
I am growing much more optimistic on the cannabis complex.
I plan to super-size (VL) my MSOS holdings and I plan to expand individual equity positions (with emphasis on GTBIF and VRNO).
I am doing so because:
* I am extremely confident that rescheduling of both medical and adult use (recreational) will pass in the next few months. (The rescheduling of medical use has already been passed. Adult recreational use will likely follow in the next few months.)
* I am confident that uplistings will soon follow. (Trulieve has become the first cannabis company to list – TerrAscend, Curaleaf and Verano have announced their intentions to uplist on either the NYSE or Nasdaq. After Trulieve, which cannabis MSO will be the next to uplist?)
* More relaxed custodian rules allowing for institutional purchases of the group. (Uplistings and rescheduling will hasten relaxation of the custody.)
* The recent debt refinancings have eliminated the frightening debt maturity cliff that some feared. (Every single cannabis company has followed up the refinancings with recently announced company share repurchases.)
* Industry fundamentals (volumes and pricing) have stabilized. (This has been confirmed by recent company reports.)
* Expectations are very low. (And getting lower with a decline in share prices!)
* Massive absolute and relative underperformance over the last five years has created a long runway for appreciation.
* Upside reward is probably more than 5x downside risk. (With the decline in the space, the uplistings, buybacks and better business conditions, I would make that 6x.)
Position: Long MSOS common (L) and calls (S), VRNO (S), GTBIF (VS)
BY DOUG KASS · May 27, 2026, 4:33 PM EDT
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The next catalyst will likely be a rescheduling of cannabis for recreational use.
Position: Long MSOS (L), VRNO (S), GTBIF (S), TRLV (S), TSNDF (VS)
