Core Insights - The article highlights Alan Brochstein's extensive experience in the investment industry, particularly his focus on the cannabis sector since 2014 [1] - Brochstein has contributed to the understanding of ETFs, emphasizing their role in diversified investment portfolios and risk awareness [1] Group 1: Professional Background - Alan Brochstein has been active in the financial sector since 1986, with a background in Economics and Mathematical Methods from Northwestern University [1] - He founded AB Analytical Services in 2007 to provide independent consulting to registered investment advisors [1] - Brochstein has been involved in both sell-side and buy-side roles in fixed-income and equities [1] Group 2: Cannabis Industry Focus - Brochstein was one of the first investment professionals to concentrate on the cannabis industry, starting in 2014 [1] - He launched 420 Investor in 2013, a subscription service focused on cannabis stocks, which is now part of the Seeking Alpha platform [1] - He is also the managing partner of New Cannabis Ventures, providing financial information in the cannabis industry since 2015 [1] Group 3: ETF Expertise - Brochstein has been writing about ETFs since 2025, aiming to help investors understand the ETF landscape [1] - He maintains a 79-ETF Focus List that includes both popular and lesser-known ETFs that stand out [1] - A model portfolio was created by Brochstein as of year-end 2025 to assist investors in managing their ETF investments [1]

Group 1 - The cannabis sector was described as a bubble seven or eight years ago [1]

Group 1: Market Overview - Cannabis stocks to watch include Tilray Brands, Canopy Growth, Aurora Cannabis, Silver Spike Investment, and Cronos Group, identified by MarketBeat's stock screener tool [2] - Cannabis stocks are characterized by higher regulatory and legal risks, and they tend to be more volatile than the broader market due to changing laws and consumer demand [2] Group 2: Company Profiles - **Tilray Brands (TLRY)**: Engages in research, cultivation, processing, and distribution of medical cannabis, operating in multiple countries including Canada, Australia, and Germany [3] - **Canopy Growth (CGC)**: Involved in the production, distribution, and sale of cannabis and hemp-based products, primarily in the U.S., Canada, and Germany, with operations segmented into Canada Cannabis and International Markets Cannabis [3] - **Aurora Cannabis (ACB)**: Produces and sells cannabis products in Canada and internationally, operating through Canadian Cannabis, European Cannabis, and Plant Propagation segments [4] - **Silver Spike Investment (SSIC)**: A specialty finance company that invests in the cannabis ecosystem through direct loans and equity ownership of privately held cannabis companies [4] - **Cronos Group (CRON)**: Engages in the cultivation and marketing of cannabis products in Canada, Israel, and Germany, offering a variety of products under several brands [5]

Group 1 - 420 Investor was launched in 2013, coinciding with Colorado's legalization of cannabis for adult use, and has since moved its service to Seeking Alpha [1] - Glass House Brands (GLASF) is highlighted as a popular cannabis stock based in California, which has outperformed many other cannabis stocks in recent years [1] - Alan Brochstein, CFA, is recognized as a pioneer in the cannabis investment sector, having founded AB Analytical Services in 2007 and managing the investing group 420 Investor since 2013 [1] Group 2 - The investing group 420 Investor covers 20 cannabis stocks, providing investment news, earnings report previews, and post-report analyses [1] - Features of the group include a model portfolio, 10 weekly videos with chart analysis, 3 weekly summary pieces, a monthly newsletter, and a chat function for investor questions [1]

Core Insights - Proactive provides fast, accessible, and actionable business and finance news content to a global investment audience [2] - The company focuses on medium and small-cap markets while also covering blue-chip companies and broader investment stories [3] - Proactive's news team delivers insights across various sectors including biotech, mining, oil and gas, and emerging technologies [3] Technology Adoption - Proactive is committed to adopting technology to enhance workflows and content production [4] - The company utilizes automation and software tools, including generative AI, while ensuring all content is edited and authored by humans [5]

Core Insights - The article discusses the launch and evolution of the 420 Investor service, which focuses on cannabis stocks, and its recent move to Seeking Alpha [1] - The analyst expresses a cautious stance on cannabis stocks but highlights Green Thumb Industries (OTCQX:GTBIF) as a favorable investment opportunity [1] Group 1: Company Overview - 420 Investor was established in 2013, coinciding with Colorado's legalization of cannabis for adult use [1] - The service has transitioned to Seeking Alpha, continuing to provide extensive coverage of the cannabis sector [1] - Alan Brochstein, a prominent figure in cannabis investment, has been managing the 420 Investor group and closely monitors 20 cannabis stocks [1] Group 2: Investment Analysis - The analyst downgraded Green Thumb Industries from Hold to Sell when its price was $5.60 in April [1] - The investment group offers various resources, including model portfolios, weekly videos, earnings report previews, and a monthly newsletter [1]

Market Trends & Regulatory Landscape - Cannabis stocks have rallied in recent months due to industry-friendly headlines from Washington [1] - The potential rescheduling of cannabis to Schedule 3 by the DEA is being discussed, possibly initiated by an executive order from President Trump [4][5] - Rescheduling could trigger a domino effect, enabling safe banking and major exchange listings for US cannabis companies [11] - Investors remain cautious due to past unfulfilled promises from politicians regarding cannabis reform [6] Investment Opportunities & Risks - US multi-state operators (MSOs) are generating billions in revenue in states with medical or adult-use cannabis programs [9] - These US companies operate contrary to federal law and are unable to list on major US exchanges or access traditional banking services [9] - Advisor Shares Pure US Cannabis ETF (MSOS) specializes in US MSOs, offering a way to invest in these companies [9] - Top picks include Curaleaf, a multi-state operator with hemp beverage interests, and Trulieve, a dominant force in Florida's medical market [12][13] Comparison with Canadian Companies - Canadian cannabis companies like Aurora, Tilray, and Canopy cannot have THC cannabis business in the US but are listed on major US exchanges [8] - US MSOs present a different investment opportunity compared to Canadian companies [13]

Core Insights - The initial optimism surrounding the legalization of recreational cannabis in Canada in 2018 has significantly diminished, leading to disappointing performance in cannabis equities over the past six years [1][2] Industry Overview - Following the 2018 reforms, Canadian licensed producers sought to list on U.S. exchanges, attracting billions in investments based on expectations of swift legalization across the U.S. [3] - Despite state-level legalization, marijuana remains illegal federally in the U.S., creating a complex regulatory environment and imposing high tax burdens, particularly under IRS Section 280E [4] - Legislative divisions persist regarding marijuana legalization, with recent attempts to impose new restrictions on hemp being removed after industry pushback [5] Company Performance - Major Canadian cannabis companies like Tilray Brands (TLRY) and Canopy Growth Corporation (CGC) have seen their stock values plummet from initial multi-billion-dollar valuations due to declining revenues and ongoing losses [6] - U.S.-based Green Thumb Industries (GTBIF), despite being one of the few cannabis companies still valued over a billion dollars, faces similar structural challenges [6] - Some companies are diversifying their operations; for instance, Tilray is expanding into craft beer and beverage alcohol, while Canopy Growth is focusing on health and wellness brands [7] Market Trends - The AdvisorShares Pure US Cannabis ETF, a benchmark for U.S. marijuana equities, has decreased by 86% over the past five years, indicating a severe downturn in the industry [8] - The potential for U.S. federal reform remains a key catalyst for recovery, as changes in marijuana's legal status could alleviate tax burdens and improve access to banking [9][10] - International markets, particularly in Europe and Australia, are showing growth opportunities, which, combined with potential U.S. policy shifts, could lead to a rebound in the sector [11] Alternative Investment Opportunities - For investors seeking exposure to the cannabis sector without the volatility of pure-play cannabis stocks, companies like Harmony Biosciences (HRMY) and Corbus Pharmaceuticals (CRBP) are developing cannabinoid-based medicines for various medical conditions [13]