Why MSO Uplistings Could Be The Next Major Cannabis Stock Catalyst – Yahoo Finance

Optimism surrounding timely U.S. federal cannabis legalization by Democrats in Washington has faded throughout 2021, and so too have early-year gains among many popular cannabis stocks. In fact, the ETFMG Alternative Harvest ETF (NYSE: MJ), which was once up more than 120% year-to-date, recently crossed over to a negative return for the year.

Despite the recent weakness, Cantor Fitzgerald cannabis analyst Pablo Zuanic said Wednesday that he still likes the setup for U.S. multi-state cannabis operators ahead of potential stock uplistings to major U.S. exchanges.

Related Link: Why This MindMed Analyst Is Bullish: ‘One Of The Most Diverse Pipelines In Psychedelics’

Potential Reform Compromise? Earlier this month, Senator Elizabeth Warren and Senator Cory Booker sent a letter to the Department of Justice urging it to decriminalize cannabis. The letter contained a deadline for action of Oct. 20.

On Wednesday, Zuanic said he believes Democrats are willing to compromise on cannabis reform, potentially settling for federal decriminalization rather than legalization.

Meanwhile, the business fundamentals for U.S. MSO stocks continue to improve, while the stocks have collectively lost about half their value since February peaks.

Institutional Buying Power: Since MSOs are not allowed to trade on major exchanges like the Nasdaq and the NYSE and technically run

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