Chit Chat Stocks Podcast — "He Bought GameStop Before It Mooned. This Is The MicroCap Stock He Owns Today"

Date: March 25, 2026
Hosts: Ryan Henderson & Brett Shafer
Guest: Rod Alsman (individual investor, early GameStop backer, and current large investor in WM Technology/Weedmaps)

Episode Overview

This episode features a deep dive into WM Technology (Weedmaps), a beleaguered cannabis sector microcap. Guest Rod Alsman—well-known for his successful early call on GameStop—joins the conversation to explain his substantial position in WM Technology, which has fallen 97% from its highs. The discussion explores why Weedmaps has cratered, its business model, the regulatory headwinds and catalysts, merger and acquisition possibilities, balance sheet management, and Rod’s thesis for why he thinks the stock is dramatically mispriced today.

Key Discussion Points & Insights

1. Why the 97% Decline? (02:06)

• Sector-wide carnage:
  • The cannabis SPAC bubble and subsequent bust hit every adjacent business—Weedmaps included. Nearly all cannabis-related public companies have suffered huge losses, with comps like Leafly delisting and Tilray dropping 95%.
  • “Just about every cannabis adjacent public company has been destroyed, delisted, decimated…” – Rod Alsman (03:36)
• Company-specific struggles:
  • WM Technology has seen revenues fall from ~$210M to ~$175M amidst competitive and regulatory headwinds.
  • He details intense tax burdens for dispensaries (Section 280E) stemming from cannabis’ federal Schedule 1 status, squeezing customer budgets and thus hurting Weedmaps’ revenue.
• One-time charges:
  • Q4 ’25 was a “kitchen sink” quarter with heavy write-downs: $7.1M goodwill impairment, $2.8M class action settlement, $4.4M credit loss provision.
• Balance sheet:
  • Despite the pain, the company holds ~$62M in cash, no debt, and trades at ~$0.25/share for the core business when stripping out cash.

Notable Quote:

“It’s not that the enterprise is impaired. I think that it’s the stock price that’s impaired.” — Rod Alsman (09:12)

2. Weedmaps’ Business Model Explained (09:55)

• "Yelp of Cannabis":
  • Platform is a two-sided marketplace connecting consumers and dispensaries; dominant U.S. player with listings for ~40% of licensed dispensaries.
  • Revenue streams:
    • SaaS (subscriptions): Compliance, POS integration, analytics for dispensary clients.
    • Advertising: Paid promotion by dispensaries (featured listings, banners).
    • E-commerce: Facilitates online ordering via WM Orders.
• Regulatory “moat”:
  • Federal prohibition (Schedule 1) prevents mainstream tech platforms (Google, Apple) and payment processors from serving this niche, protecting Weedmaps from large-scale competitors.

Notable Quote:

“Federal illegality is actually the moat in this case because it keeps the big players out of the marketplace.” – Rod Alsman (12:24)

3. Impact of Federal Legalization/Descheduling (12:26)

• Talks of federal rescheduling (Trump’s executive order, March 2026 reporting), which could eliminate the 280E tax issue but also invite more competition.
• Still, network effects and market incumbency could secure Weedmaps’ position if they capitalize well.

4. Growth (or Lack Thereof) and Near-term Catalysts (14:34)

• “It hasn’t” grown—operating metrics have been flat in both client count and revenue per client.
• Rod argues for an “operating trough,” expecting the November 2026 hemp ban to push more business toward licensed dispensaries as hemp-derived product loopholes close.
• Virginia legalization (pending gubernatorial signature in April 2026) is a significant event, potentially opening a top-10 state (~9M population, 350 licensees), and advertising restrictions there play to Weedmaps’ strengths.

Notable Quote:

“I have incremental EBITDA margins on this in the mid-70s to mid-80s...on the year 5 terminal value of Virginia alone, I come to a midpoint that’s close to the current market cap...” – Rod Alsman (20:27)

5. Takeover Potential and Governance Moves (22:28)

• Co-founders made a buyout offer at $1.70/share in December 2025 but withdrew in June, reserving the right to return.
• Recent board/governance actions:
  • Permanent CFO appointment, addition of independent directors, and class action settlement all point to a company preparing for “deal readiness.”
  • Rod’s activism: multiple letters to the board to surface shareholder concerns.
• Majority-of-the-minority vote requirement would govern any future take-private offer.

Notable Quote:

“They said one day before the shareholder meeting that we are going to, for now, table it and we may come back.” – Rod Alsman (23:59)

6. Tax Receivable Agreement (TRA) and Treasury Management (30:53)

• The TRA would force a $139M lump sum payment to co-founders in change-of-control—a major hurdle to outside M&A.
  • “Any third party acquirer...would have to pay, in full, and that benefit would solely be paid to the co-founders...” – Rod Alsman (31:27)
• Treasury mismanagement: Alsman asserts Weedmaps forfeited ~$4M in interest income by not investing idle cash despite a high-rate environment (2022–2024).
  • He speculates this cash may be kept intentionally large for facilitating a management-led buyout.
• He’s received no responses from the board to four letters.

7. Risks and Downside Scenarios (38:05)

• Key business risks:
  • Continued revenue decline, failure to resolve NASDAQ listing deficiency, potential delisting or reverse split (sometimes value-destructive).
• Recommends an issuer tender at $1.60–$1.80 as a viable path to cure the listing deficiency and return excess cash—notes the depressed share price implies an EV/EBITDA multiple of 3.2x.
• Sectoral risks: Credit market disruptions could complicate financing; full federal descheduling could allow “Google to eat their lunch.”

8. What Could Make the Stock “Work” (42:39)

• Upside scenarios:
  • Take-private at fair value (e.g., above $2.50/share).
  • Realization of Virginia and hemp ban catalysts.
  • Organic re-rating as regulatory catalysts (e.g., elimination of 280E) and/or normalization of financials after Q4 “kitchen sink.”
• Intrinsic value: Rod estimates fair value at $2.50+, using conservative assumptions.

9. Are We at the Trough? (45:26)

• Rod believes so, thanks to the combination of regulatory catalysts coming and stagnation in negative trends (stable client/pay levels).
• Notes cash on hand has grown—company is not burning cash.
• Observes company’s dominant market share is likely intact, even as competitors (Leafly) have disappeared.

10. Valuation Perspectives (50:05 & 51:20)

• Weedmaps trades at less than 1x EV/EBITDA and below 1x price/gross profit.
• Barriers to institutional investment are amplifying the undervaluation (deficiency notice, broker restrictions).
• Rod: “Just because people cannot buy the stock does not mean it’s a fair price.” (52:44)

11. Short Interest and Market Mechanics (53:10)

• The stock is subject to “indiscriminate selling” stemming from rules-based mechanical shorting, not fundamentals.
• Short interest has climbed after deficiency notice and negative events, despite the apparent deep value metrics.
• “Virginia...cash plus Virginia gets you there [to current market price]...I converge using conservative methodologies around a material sizing for that state as an incremental benefit to the company.” – Rod Alsman (56:07)

12. What Are Investors Missing About Weedmaps? (53:43)

• Virginia opportunity is not modeled by sell-side or market participants.
• Market mispricing is exacerbated by governance quirks and mechanical selling.
• Rod is “backing every dollar of analysis with my own capital.” (58:37)

Notable Quotes & Memorable Moments

• “It’s not that the enterprise is impaired. I think that it’s the stock price that’s impaired.” — Rod Alsman (09:12)
• “Federal illegality is actually the moat in this case because it keeps the big players out of the marketplace.” – Rod Alsman (12:24)
• “What would make it work would be a take private at fair value, a price reflective of the cash balance and normalized earnings power, the enacted Virginia catalyst and the probability weighted regulatory upsides.” – Rod Alsman (42:42)
• “Just because people cannot buy the stock does not mean it’s a fair price.” – Rod Alsman (52:44)
• “[The] only fundamental analyst’s assessment and the market price...it’s a 300% gap plus between the only fundamental analyst’s assessment and the market price.” – Rod Alsman (57:28)
• “Every single dollar of the analysis I’ve published is backed by my own capital.” – Rod Alsman (58:37)

Timestamps for Major Segments

| Segment | Timestamp | |-------------------------------------------------|-------------| | Intro and disclosures | 00:27–01:00 | | Why has Weedmaps stock collapsed? | 02:06–09:33 | | What is Weedmaps’ business model? | 09:55–12:26 | | Does federal legalization help or hurt? | 12:26–14:34 | | Historical & potential growth, Virginia catalyst| 14:46–21:12 | | Acquisition potential and board signals | 22:28–30:22 | | Tax Receivable Agreement and treasury issues | 30:53–36:05 | | Shareholder activism & board response | 36:05–38:05 | | Risks and downside scenarios | 38:05–41:57 | | What moves the stock higher? | 42:39–44:43 | | Are we at the operating trough? | 45:26–49:04 | | Valuation, discounted multiples | 50:05–53:10 | | Market mechanics, short interest, core thesis | 53:10–59:13 | | Where to find more from Rod Alsman | 59:26–60:25 |

Additional Resources

• Rod Alsman’s Substack: rodalsman.substack.com
• Twitter: @odalsman

Closing Note

Rod’s thesis relies heavily on understanding governance maneuvers, regulatory catalysts (notably Virginia and federal rescheduling), structural market quirks, and the degree to which market prices are disconnected from company fundamentals due to sector carnage and mechanical selling. Listeners seeking a detailed breakdown of microcap investing and cannabis sector distress will find this episode particularly illuminating.

For further detail, refer to Rod Alsman’s full published analysis and correspondence, linked in the show notes.