Brochstein discussed why Alcanna, a Western Canada-based retailer of alcohol and cannabis, is an attractive stock pick.
The company has strong exposure to the province of Alberta, where the economy has struggled. The stock represents a "classic value story" and not a "value trap," Brochstein said.
The retailer has five locations open in Alberta that sell cannabis, and its new business is "doing very well so far," he said.
Alcanna's market cap is justified based on the alcohol business alone, which gives investors the cannabis business almost for free, Brochstein said. The company has the potential to be one of the leading cannabis retailers in Canada, he said.
The Canadian cannabis retail market hasn't performed as well as many expected due to a shortfall of supply, Brochstein said.
As the market corrects itself, Alcanna is looking to open 25 stores in the large and populated province of Ontario — which he said pales in comparison to the smaller state of Colorado in U.S., which has 500 dispensaries.
You can see Brochstein along with several other cannabis companies and investors at the Cannabis Capital Conference in Toronto on April 17-18.
Listen to the full interview with Brochstein below:
PreMarket Prep is a daily trading show hosted by prop trader Dennis Dick and former floor trader Joel Elconin. You can watch PreMarket Prep live every day from 8-9 a.m. ET here. The replay can be found on Benzinga's YouTube channel, and the podcast is on iTunes, Google Play, Soundcloud, Stitcher and Tunein.
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