The Cannabis Investing Podcast · Seeking Alpha

Alan Brochstein on rescheduling overexcitement, MSOs, Canada and the burden of 280E

·51 min·3 clips

Brockstein says his MSO targets now split into two cases: “280E goes away” versus “280E remains.”

1. The Cannabis Investing Podcast episode centers on Alan Brockstein and the latest cannabis market reaction to Washington news about rescheduling. 2. Host Reena Sherbel interviews Alan Brockstein, a Seeking Alpha contributor and cannabis analyst, because his valuation work focuses on MSOs, 280E, and balance sheets. 3. The episode asks whether the recent rally is driven by real policy change or by headlines that do not yet alter fundamentals. 4. Brockstein says investors are “overexcited” because the week’s news did not answer whether cannabis moves from schedule 1 to schedule 3 or when. 5. He says his MSO targets now use two scenarios, one where 280E goes away and one where 280E remains. 6. He argues that federal legalization is not required for 280E relief, but rescheduling alone may not solve the tax problem. 7. Brockstein says the cannabis capital markets are still weak, with debt and equity financing difficult for MSOs. 8. He says some companies have large income tax payable balances that he does not count as debt but still treats as a serious liability. 9. He points to Planet 13 as a standout because it has “literally no debt,” even though there is a separate cash-loss risk he says listeners should investigate. 10. He contrasts that with Curaleaf, which he says has hugely negative tangible book value, and with GTI, which he describes as more conservative. 11. He says Curaleaf, TerrAscend, Air, and Ascend each fit different debt and valuation profiles, but some names remain too leveraged for his model portfolios. 12. On up-listing, Brockstein says NASDAQ and the New York Stock Exchange do not have to list U.S. cannabis operators and appear worried about future liability. 13. He says the exchanges have not issued a public explanation for their stance, and he thinks federal legality is likely required before that changes. 14. On Columbia Care, he says the company looks cheap relative to tier-one and tier-two peers and that the leadership change to David Hart looks like a move in the right direction. 15. He says he increased his Columbia Care position after the stock was hit and calls its valuation attractive compared with peers like Cresco. 16. On California, he says the state is a huge cannabis market but was mishandled because medical cannabis was not properly regulated at the state level for years. 17. Brockstein’s tone is analytical and skeptical, with long answers that compare operators, debt, and market structure rather than short stock picks. 18. Reena Sherbel keeps the interview conversational and repeatedly pushes for company-specific examples across the U.S. and Canada. 19. Investors focused on cannabis balance sheets and tax policy. 20. Viewers who want only a quick rescheduling headline recap.

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