For this episode of the PlanetMicroCap Podcast, I spoke with Alan Brochstein, the Cannabis Financial Analyst of 420Investor.com. In Episode 3, we learned more about the business of cannabis and marijuana, but didn’t cover a lot of what’s going on from a capital markets perspective. So, I wanted a better understanding of the industry from the point of view of an investor. There are a lot of publicly-traded companies in the cannabis space, and its important to me to understand what we should look out for when looking at a potential company to invest in.
The goal for this episode is to get a better understanding of the marijuana industry in the capital markets, what, as an investor, we should look out for when considering investment in a public cannabis company, how to evaluate management, and more!
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In this episode, Alan and I discuss the following topics:
- Alan's background and how he got into research publicly-traded cannabis companies
- Overview of the marijuana industry in the capital markets – who were some of the first public cannabis companies, and how it has evolved over time
- Different sectors within the industry
- How federal regulations affect the industry
- What should investors be aware of, and potentially look out for, especially with the election coming up in November
- As an investor, what we should look out for when considering investment in a public cannabis company
- How to evaluate management - Positive and negative characteristics
- His most recent article from the MicroCapReview, your title, “Cannabis investors have reasons for optimism in 2016” –discusses why we should have more optimism in 2016 when 2015 proved to be a huge disappointment for the publicly-traded cannabis stocks
- Resources for investors to learn more about investing in cannabis
Alan Brochstein's Twitter: @Invest420