The Cannabis Investing Podcast · Seeking Alpha

Cannabis investing with Alan Brochstein & Julian Lin - REITs + Canadian LPs over MSOs

·46 min·2 clips

Julian Lin says New Lake Capital Partners has $40 million of net cash and no 280E taxes.

1. The Cannabis Investing Podcast episode centers on cannabis investing, REITs, Canadian LPs, and MSOs, with Reena Sherbel hosting Alan Brockstein and Julian Lin. 2. Alan Brockstein runs 420 Investor on Seeking Alpha, Julian Lin runs Cannabis Growth Investor on Seeking Alpha, and Reena introduces both as major cannabis analysts. 3. The episode asks what cannabis investors should own when legalization timing is uncertain and debt levels remain high. 4. Julian says he entered cannabis investing around 2020 and 2021, near the peak, and then learned that growth slowed faster than expected after the pandemic. 5. He says M&A did not produce the operating-expense cuts he had expected and that price compression hit the industry hard. 6. Julian argues that management teams made a bigger mistake by funding acquisitions with debt rather than stock. 7. Alan says his outlook turned muted after earlier optimism, because the investor pool is mostly retail and he does not know where new buyers will come from. 8. He says the market is waiting for either NASDAQ listings for American operators or the end of 280E. 9. Alan says the TSX helps a little, but major U.S. exchange access matters more than a Canadian listing. 10. Julian says Curaleaf's issues are balance-sheet driven, citing negative tangible book value, heavy debt, weak cash flow, and over $200 million of income taxes payable. 11. Alan compares Curaleaf with GTI, saying GTI has about $551 million of tangible book value and only about $10 million of income taxes owed. 12. Julian says Trulieve trading around four times adjusted EBITDA still looks cheap only if debt and interest expenses do not overwhelm shareholders. 13. He says paying down debt with equity would be painful, but it could improve cash flow enough to change the economics. 14. Alan says cannabis investors should think about current ratios, tangible book value, and liabilities due within a year, not just headline multiples. 15. He points to Curaleaf's current ratio of 0.9 and its $210 million tax burden as examples of what he thinks investors miss. 16. Julian makes the strongest case for cannabis REITs, especially New Lake Capital Partners, because it has about $40 million of net cash, no 280E taxes, and roughly 80% to 90% free cash flow margins. 17. Alan says the episode has a sober tone, with both guests arguing from balance sheets, valuation, and cash-flow metrics rather than market hype. 18. The format is a long interview with back-and-forth follow-ups, including pointed disagreement on Curaleaf, Chronos Group, and AFC Gamma. 19. Investors who like deep-value cannabis analysis and REIT comparisons will likely find this useful. 20. Investors waiting for a legalization prediction or a quick rebound may skip it.

As heard by us

A sober cannabis investing conversation focused on timelines, REITs, value, and discipline over headline guessing.

This episode takes a clear-eyed look at cannabis investing, with timelines, stocks, REITs, and the metrics investors should actually use. Reena Sherbel talks with Alan Brockstein and Julian Lin in a way that stays grounded in investable structure rather than headline chasing,…

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You want a cannabis investing map that stays useful after the federal-legalization chatter fades.

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