Pot Stock Analyst Talks About High Revenue Potential

Alan Brochstein launched the 420 Investor a few months ago, but made quite a name for himself before then. An investment industry veteran since 1986, Brochstein has hopped on the marijuana train and developed a large following -- his 67,000 followers leads Seeking Alpha. How did he get interested in this specific field?

Brochstein

read an article from

Dr. Sanjay Gupta

in August and launched 420 Investor "with idea that all these people are interested in marijuana stocks, and not much coverage from Wall Street."

The head of AB Analytical Services told Benzinga's pre-market Internet broadcast that there are two big, highly fragmented markets: 1) people that like to use it (i.e. like alcohol) and 2) the medical professionals and users.

The CFA spoke about how

GW PharmaceuticalsGWPH

exploded a few months ago and how the cannabinoid (CBD)

is being used by GW

to create a 400 milligram pill that can help children and adults. The drug is designed to help children with epilepsy.

Brochstein continued to talk about the revenue that can be generated from marijuana state-by-state. "Opportunities for farmers in many states that can do it legally. (But) taxes are outrageous. And It's a cash business, not credit card."

"The government spends way too many resources," he said. "You wouldn't believe how much money is wasted on petty offenses. People end up paying a lot more than they should for marijuana because of market conditions and quality (of the plant)."

He said there is still a lot progress that needs to happen and that it would be a slow transition when or if it does. Should tobacco companies get any consideration? "No.They cant touch it until it's federally legal. Too much to risk."

He also discussed

MCIGMCIG

, a relatively new company that has developed a legal marijuana vaporizer, much like the e-cig. The mCig heats plant material instead of burning it, providing a superior method of consumption that is much smoother, according to the company's website. The product sells for $10, while the stock itself has a market cap of $35 million.

"What's really gonna change for investors is you have new companies entering the public market -- three or four since I launched. This is really exciting."

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