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Alan Brochstein, CFA
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Alan Brochstein, CFA has worked in the securities industry since 1986, primarily with the responsibility for managing investments in institutional environments until he founded AB Analytical Services in 2007 in order to provide independent research and consulting to registered investment... More
My company:
420 Investor
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  • 420 Investor Presents A 10-Q Walk-Through

    This is the first in what I hope will be a series of educational videos to demystify SEC filings. Separate yourself from the pack and learn to pull the important information from these required disclosures rather than relying solely upon what they want you to read (their press releases!).

    In this 32 minute video, I extend upon the educational series " Basics by Brochstein " from 2014 and explain the key attributes of the 10-Q filing, a quarterly obligation to the SEC by companies that report to it. I cover:

    • Where to find the 10-Q
    • What to look for
    • Why it is important

    Watch the Video

    May 24 5:04 PM | Link | 1 Comment
  • 420 Investor Newsletter - Just $49 For A Year

    As I get ready to go to press with what will be my 9th edition of the 420 Investor Newsletter (with discussions of my recent trip to Canada to visit marijuana production facilities, my outlook for Nevada-based testing labs and the issues surrounding "CBD-only" laws), I want to offer people interested in the cannabis industry and in learning about the investment risks and opportunities a chance to get into our community at an insanely low price (Memorial Day special - $49 instead of $99). VIP members of 420 Investor pay $42 a month or $420 per year for full access to our community, which includes the newsletter but also many other features, but you might not be quite ready to make that investment of time or the expense. I began offering the 420 Investor Newsletter last year to help people who are curious about the risks and opportunities but are not yet ready for the steady flow of information shared within our community on a daily basis.

    Whether you don't think the market is quite ready for you to commit to the 420 Investor VIP subscription or you just aren't ready yet, there is no better way to keep your finger on the pulse of the market than with the 420 Investor Newsletter. Just $49 for the year (about $4 per month) gets you:

    • Market Review and Outlook
    • 3 Feature Articles on the industry and the companies
    • Performance Summary
    • Industry Calendar
    • Company Updates

    If that's not enough, I am including access to our highly valuable "Forums" that allow you to keep up on a variety of topics and companies and even upload your own content. Through at least 8/31/15, I am giving subscribers to the 420 Investor Newsletter access to this valuable tool. You will also get the popular "Daily Dab" delivered into your inbox with no advertisements.

    Get the 420 Investor Newsletter for just $49 for the first yearSUBSCRIBE
    May 23 4:51 PM | Link | 2 Comments
  • Slides From Houlihan's Valuation Of Kannaway For MJNA

    5 weeks ago, MJNA announced that it was buying Kannaway, the MLM that distributes some of its products. The press release, which didn't detail the terms of the transaction, alluded to a valuation analysis performed by Houlihan Capital that suggested Kannaway is worth $120-$242mm, but it didn't share the assumptions that went into that analysis. My initial reaction was cautious:MJNA: It's What They Didn't Say About Kannaway That Should Make You Run Away.

    As a result of litigation between Kannaway and CannaVest, the valuation analysis is now in the public domain. Based on the current price of .11 for MJNA, it appears that the company will need to issue approximately 970mm shares (about 100% of the current outstanding shares) to complete the acquisition. The slides, posted below, indicate that the valuation analysis was based on inputs provided by management. My own review is that they seem outrageously high and unrealistic, not unlike the revenue projections MJNA provided publicly two years ago.

    Alarmingly, the revenues have plunged since the launch of Kannaway (see Slide 15). The company booked revenue of $5.5mm for 2014 (8 months) and provided detail for May to October totaling $4.7mm. This implies that the last two months of the year of about $761K. For the last 2 quarters of 2014, then:

    • Q3: $2.0mm
    • Q4: $1.1mm

    This is NOT a growing enterprise!

    Garbage in, garbage out...

    Click HERE for the entire valuation analysis

    Tags: MJNA, cannabis
    Feb 25 2:30 PM | Link | 2 Comments
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