Today, I am very excited to be joined by Alan Brochstein. Alan is the founder of 420 Investor, an online community featuring ideas, research, and conversation about stocks in the cannabis industry, and NCV Media, the company behind New Cannabis Ventures, a publicly facing curated content aggregation site focusing on the most promising companies and investors in the space.
With over 20 years of experience in fixed-income and stocks, Alan started his independent consulting firm, AB Analytical Services, in 2007 in order to offer independent and unbiased research to institutional clients. We know Alan's work well as he was once a leading contributor at Seeking Alpha. Alan is now focused only on the cannabis industry. Alan's full disclosure can be found here.
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- 2:30 - What brought Alan to the cannabis sector (the power of Seeking Alpha!).
- 6:30 - Why Alan decided to focus solely on the cannabis space in 2013.
- 9:55 - The difference between the industry in Canada and the US. Most people in the cannabis industry don't actually want legalization.
- 16:00 - Do the bigger Canadian companies have a leg up in the US or global markets once they go legal? Access to capital is key.
- 20:40 - Companies focusing on one aspect of the industry vs. a broader scope. Cultivation plays developing out of California, but especially on branding side. Biosynthesis as a disruptor.
- 29:30 - Pure play vs. non pure play ETFs. In a growing field (3 new ETFs in the last couple weeks alone), which cannabis ETFs look best?
- 37:30 - Is M&A or consolidation the future of the industry? More cross-border, cross-industry consolidation. US companies investing in smaller Canadian LPs.
- 41:10 - Medical innovation and substantiated claims help erode the stigma around cannabis. Financial appeal also helps on the business side.
- 44:25 - Blockchain as an ancillary part of the sector - watch out for fraud, but there is a role for blockchain as a payment alternative.
- 45:35 - Advice to investors in the industry. Important to be cautious in this space - opportunity breeds opportunists.
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