In TDR’s Diamond Hands Podcast #4, we speak exclusively with Lead Financial Writer Benjamin A. Smith with Anthony Varrell off this week. On the agenda: analysis of what it’s going to take for the cannabis benchmark exchange traded fund, AdvisoShares Pure US Cannabis ETF (MSOS), to find bottom.

Now down 41.89% on weekly closing basis since the second week in February, the long descent down has been brutal. Despite a solid earnings season, continued strong fundamentals and persistent M&A action (both public and private) dotting the landscape, price has continually suffered. To exemplify the counter-intuitive nature of the decline, we highlight how strong sequential sales have performed over the past six quarters (ex-Canopy Growth).

In many cases, growth is growing triple-digits year-over-year and many Tier-1/2 multi-state operators are EBITDA positive.

However, fundamentals have taken a back seat to other factors in recent times, as we discuss in further detail. We also discuss the three most likely scenarios that could bring about a near-term bottom. Building base support is the likely first step needed towards changing the overall trend.