Cannabis stocks have rebounded sharply over the last twelve months. The AdvisorShares Pure US Cannabis ETF, MSOS, has climbed roughly 104% year-over-year, while the S&P 500 is up about 28% over the same period. On the surface, the sector appears to be recovering.
Pull the actual financials and the rebound narrows fast.
Roughly a dozen North American cannabis operators generated more than $50 million in adjusted EBITDA over the last twelve months. At $100 million, a threshold advisers say is closer to where institutional investors begin to care, the number drops to seven. All seven are American.
