Alan Brochstein On Cannabis Investing In 2022

Summary

• Cannabis industry expert Alan Brochstein on 2022 catalysts.
• New York and New Jersey's path to legalization, how to look at consolidation.
• Direct listings and SPACs, cannabis REITs, Curaleaf and Verano.
• Unsurprised by MedMen/Ascend Wellness deal breakdown.

Listen on the go! Subscribe to The Cannabis Investing Podcast on Apple Podcasts, Spotify, and Stitcher.

Alan's current view on the industry. WM Technology (MAPS), Ascend Wellness (OTCQX:AAWH)-MedMen (OTCQB:MMNFF) breakdown ('You could see this coming a mile away.'). New York and New Jersey's path to legalization and what investors should be focused on.

How to look at consolidation using Liberty Health and AYR (OTCQX:AYRWF) as an example. Direct listings and SPACs, including Leafly and Merida (MCMJ). New Lake Capital (OTCQX:NLCP) and cannabis REITs. 5 reasons why Verano's (OTCQX:VRNOF) doing well; Canopy Growth's (CGC) curious deal with Wana; Curaleaf (OTCPK:CURLF) expensive.

Editor's Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.

Comments

[thekidd757]

This was great! Thank you!

[Ido Barak]

Great to hear you both. Rena, congrats on the promotion!

[Rena Sherbill]

@Ido Barak Thanks Ido :)!

[OneStrawRevolutionFarming2023]

Wow that heart rendering close to the podcast had me crying in my root beer - very touching :-)

[OneStrawRevolutionFarming2023]

The ATL = the "dirty dirty" :-) Where's the 'dro' Bro :-) What's up with the Cheeba :-)

[OneStrawRevolutionFarming2023]

Big Box like Planet 13 that have medicinal valued added might do well but just having a large dispensary might not do much and might be too much of a "zoo" for many patients to feel comfortable in :-)

[I don't work for any company and I don't get a commission]

https://cvacsystems.com/

www.outsideonline.com/...

healthyline.com/...

Adding PEMF biomats and barometric pods might actually bring in more traffic especially to recover from Vegas :-)

[OneStrawRevolutionFarming2023]

Patients probably are looking for medicinal products from these types of companies: switched their cultivation to "live soil" and advocating for Home Grow :-)

www.youtube.com/...

[OneStrawRevolutionFarming2023]

Yo, yo, yo Cannabis and mushrooms will likely be and can be in the same medicinal polycultures Yo, yo, yo :-)

www.youtube.com/...

www.youtube.com/...

And grown together, too, soon because the mushrooms can be like lungs and filters for the air the cannabis plants take in :-)

[OneStrawRevolutionFarming2023]

How valuable can those NY licenses be IF the "informal" market ALREADY serves the entire market :-)

The larger the "informal" market the less valuable the licenses might be within a legal jurisdiction but the licenses NEAR NY (MA, VT, ME, NJ) might be very valuable at lower costs :-)

There aren't and probably won't be blockades and search and seize on the roads leading into NYC and if there are then NYC probably has problems :-)

The MOST valuable licenses perhaps are the ones that are in close proximity to the largest population but NOT IN THEM = in the long term it likely will lead to cheaper production costs :-)

However, Sun Belt licenses, then, might be the most valuable because production can be close to 365 :-)

[OneStrawRevolutionFarming2023]

The MAPS system might already exist in NYC and the delivery is done by bicycles, 24/7 365 :-)

[OneStrawRevolutionFarming2023]

NY cannabis has ZERO medical qualifications because that might be the only way to compete with the "informal" market :-)

[OneStrawRevolutionFarming2023]

Unclear that we can conclude that NJ is more important or impactful than AZ because each place has different microclimates and folks will want some of the Sun Grown from AZ but they also might want some Ocean Grown from NJ so a comparison to evaluate might not be that meaningful :-)

In addition, because of the variety of microclimates in NJ and AZ, there might innovation for different products; even the SAME FLOWERS will grow differently in each of those microclimates/legal jurisdictions :-)

[gadlee]

Welcome back Rena! Thanks for all you do! Would love to hear an updated analysis or interview with Khiron Life Sciences given all the regulatory changes over the past couple months.

[blome]

It would be nice if these podcasts could be translated into a transcript.

[colorado buff]

@blome agree

[Rena Sherbill]

@blome Transcript coming!

[Rena Sherbill]

@colorado buff seekingalpha.com/...

[Alan Brochstein, CFA]

Thanks, @Rena Sherbill! It's always a great time discussing cannabis stocks with you.

[Rena Sherbill]

@Alan Brochstein, CFA Thanks as always Alan for sharing such great insights!

[User 48169277]

@Alan Brochstein, CFA How does Amazon's endorsement fit the equation ? Xlent podcast as usual, ty.

[Alan Brochstein, CFA]

@Dennis Hulihan, thanks for the kind words. This is something that's nice to see but not something truly meaningful, in my view

[colorado buff]

Alan brochstein usually has something good to say. His quick analysis on tilray earnings was spot on. I’m long tilray but definitely share his concerns. Will listen to this later.

[No prophet investor]

I love her voice. lol Great host and good interview. Now we just need the sentiment to shift.