Alan Brochstein

Founder

420 Investor

Leading expert in publicly-traded cannabis stocks in the U.S. and Canada with deep connections to the overall cannabis industry

Call Rates

Duration Price
15 minutes $40.00
30 minutes $75.00
60 minutes $150.00

Tags

Stocks Canada Capital private placements investing

Biography

  • 30 years of investment experience
    • Began on Wall Street trading Mortgage-Backed Securities with Kidder, Peabody
    • Fixed-Income Investment Management with CS First Boston and Criterion
    • Equities Investment Management at Piedra Capital, which managed over $500mm
    • Independent research and consulting for institutional investors from 2007
    • Prolific contributor to financial website Seeking Alpha
  • Cannabis industry
    • Entry in early 2013
    • Created first online subscription based service for publicly trades stocks, 420 Investor, in late 2013
    • Publish monthly newsletter associated with 420 Investor
    • Launched B2B website New Cannabis Ventures in late 2015 to provide marketing and communications services to private cannabis companies
    • Extensive social media, including cannabis industry LinkedIn group with over 4000 members, over 10K Twitter followers and over 7K Facebook followers (all organic)
    • Proprietary index for U.S.
    • Proprietary index for Canada
  • Extensive media exposure

Education

Northwestern University

Bachelor's Degree
1983 - 1986

Dual Degrees in Economics and in Mathematical Methods in the Social Sciences

Other

Certifications

Chartered Financial Analyst

CFA Institute
12/13/2017 2:19:57 PM,
Alan Brochstein replied:

The valuations are high and most likely not sustainable based solely on future Canadian business, but when one factors in European and other opportunities, perhaps it's less troubling.

10/31/2017 11:33:08 AM,
Alan Brochstein replied:

I think that it tells us that Canada is the global leader and that the alcohol industry is very interested in particpating in the cannabis industry growth. Cannabis products will likely slow the growth of beer and alcohol and even take share over time as they become improved (rapid onset, low dose) and available. It's a real validation of the legitimacy of our industry to see this transaction.

9/15/2017 5:05:33 PM,
Alan Brochstein replied:

I am not an expert in ICOs, but I find them to be a potential landmine, especially when combined with all of the challenges facing the cannabis industry. I think that there could be a great role for blockchain in the cannabis industry and am tracking Tokken, for example. I have seen 4 companies positioning for ICOs, and I would be very careful in all cases. Lots of hype! We published a guest piece: https://www.newcannabisventures.com/the-dangerous-intersection-of-cannabis-and-cryptocurrency-icos/

9/3/2017 10:26:12 PM,
Alan Brochstein replied:

I am not sure, but it takes a while. Even in Colorado, there is still a black market. High taxes are one policy that can help perpetuate the market. In Canada, we are concerned that legal market products will be so restricted that the black market wll be sustained to fill a void in what consumers want.

4/5/2017 1:20:45 PM,
Alan Brochstein replied:
I haven't fully researched fundanna yet, but I am very skeptical generally. It will work best with a consumer product or service in my view. I suggest doing a lot of diligence on the platform itself, whether fundanna or others. There are huge liquidity issues in my view, and one shouldn't  invest money that might be needed over the next few years. 
4/3/2017 6:55:57 AM,
Alan Brochstein replied:
While cannabis stocks generally rallied in 2016, many performed very poorly. I don't have an exhaustive list, but here are a few that were among the worst: CannaSys (MJTK), FBEC International (FBEC), Greenhouse Solutions (GRSU), Hemp, Inc. (HEMP), MyDx (MYDX), Notis Global (NGBL), 
A common theme is that these companies relied too heavily on convertible notes without floors...
12/24/2016 7:31:42 AM,
Alan Brochstein replied:
A lot depends on a big unknown right now: Federal policy.  If the new Attorney General pursues enforcement of the Controlled Substances Act, it's likely to damper investment in general, especially in non-medical cannabis companies. So, cultivation and retail stores may struggle to find investors in states where non-medical (adult use) measures are in place. 

It's unlikely that there will be enforcement, if any, against medical cannabis providers, but it could dampen interest, especially in companies focused on edibles or high potency extracts, which could see regulation.

Absent these concerns, I think that companies that help lower the cost of production or increase regulatory compliance are good areas of focus in any environment. 
7/1/2016 10:08:45 PM,
Alan Brochstein replied:

I have been following GWPH since it came public and believe Epidiolex will be approved for treatment-resistant rare forms of epilepsy.  If that is the case the stock will likely appreciate further.  The company's time-line to approval has been pushed out a bit over the past year, with the most recent goal being to file a New Drug Application (NDA) "in the first half of 2017". The earliest the drug would be on the market then is very late 2017.  I run a model portfolio designed to beat an index that has 28 cannabis stocks that meet certain liquidity and price requirements, with each one equally weighted at the beginning of each quarter, when the index is rebalanced.  My exposure in my model portfolio is only slightly above its weighting in the index at this time. I will be looking to increase it as we get closer to the filing of the NDA or if the price dips to a level that makes the risk more in balance with the near-term opportunity.

For you or anyone who is interested in GWPH, it is definitely one of the most discussed stocks on 420 Investor. Thanks for the question!