Cannabis Stocks Held Back by IRS Rule Despite Record Cash Flow

The AdvisorShares Pure US Cannabis ETF (MSOS) is seeing unusual retail investor activity as traders bet on federal cannabis rescheduling from Schedule I to Schedule III, which would eliminate Section 280E tax restrictions. MSOS has slid 18% YTD, but its composite sentiment score is bullish, driven by the anticipation of federal action. Trulieve, Green Thumb Industries, and Curaleaf are generating strong cash flow but carrying uncertain tax liabilities that would be eliminated by rescheduling.