This Weed Stock Could Multiply Your Investment in 2018
Marijuana stocks have made waves for creating overnight millionaires this year. But just as the market realized their potential, these stocks began to slip out of the reach of average investors.
Yet, there are some valuable gems hiding out of plain sight waiting to be discovered, and we may have managed to score one. Here I present to you, CannTrust Holdings Inc. (CNSX: TRST, OTCMKTS: CNTTF) stock.
This is one of the rare marijuana stocks having its income numbers flashing in green. Unlike most other marijuana companies turning losses to stockholders, this one is making profits.
There’s no shame if you haven’t heard of it sitting in the U.S. This Canadian marijuana company went public only three months ago and so far remains relatively unknown within its home country, too.
In these three months alone, CannTrust has managed to cross some major milestones, all of which have lent to its quick triple-digit growth. CannTrust stock has jumped over 290% since mid-August, when it first traded on the public exchange.
By comparison, the more popular marijuana stocks like Canopy Growth Corp. (OCTMKTS:TWMJF, TSE:WEED), Aphria Inc. (OCTMKTS:APHQF, TSE:APH), and Aurora Cannabis Inc. (OCTMKTS:ACBFF, TSE:ACB) have trailed it in performance in the same period, posting gains of 112%, 130%, and 181%, respectively.
So what exactly does CannTrust do and why are we excited about it? Let me give you a quick overview.
A Bird’s Eye View of CannTrust
CannTrust grows and sells medicinal marijuana and derivative products (in case, that wasn’t obvious already). Its primary cash cows are cannabis oil and dried cannabis strains.
What really piqued our interest in the company is the fact that its year-over-year revenue growth in the most recent quarter was amongst the highest recorded in the industry—a whopping 680%, which beats the industry bigwigs Canopy Growth, Aphria, and Aurora.
In absolute terms, CannTrust’s revenue in the most recent quarter stood at $6.14 million, again higher than most marijuana players, including Aphria.
This revenue flowed from its rapidly growing active patient-base. The number of its active patients has significantly climbed in the past six months, with CannTrust adding at least 10,000 patients in each of the past two quarters. The total number of active patients currently stands at 35,000.
The numbers are highly impressive considering the fact that the company is still in its nascent phase of growth.
Like I mentioned earlier, the company is making a profit, unlike most other marijuana companies.
On top of that, CannTrust received an approval from Health Canada just last month to begin selling internationally. It has already begun shipping its products to Australia.
Just so you know, CannTrust uses hydroponics to grow its weed—which means the grass grows in water and not soil.
Products are 100% pesticide-free, which gives it an edge over many mom-and-pop growers. Its high-quality medicinal cannabis appears better-suited for patients.
All of this seems good in a cursory look, but why exactly do we see this stock multiplying in the coming years?
Here’s Why CannTrust Stock Could Easily Triple in 2018
We find CannTrust to be expanding at a supersonic pace. New initiatives within Canada coupled with its global expansion could bring in truckloads of money. We’re seeing revenue doubling in the next year on the back of some of the following developments.
- CannTrust is expanding the size of its existing production facility, not by twofold or threefold, but by eightfold!
- It is growing the size of its current 50,000-square-foot cannabis cultivation facility to 430,000-square-feet by 2018.
- Just two weeks ago, it raised $20.0 million in additional funds to finance this expansion move.
- The expansion is expected to complete by mid-2018, just in time for Canada’s full-legalization day. Perfect timing for the company to begin selling recreational weed.
- The completion of the facility would take its annual production to 40,000 kilograms.
- Meanwhile, international expansion is underway. After Australia, its next stops are Germany, Denmark, and Brazil.
These expansionary measures raise CannTrust’s potential to become a multi-bagger in 2018.
In less than two more weeks, we’ll be welcoming 2018. Big predictions are being made for the new year; self-driving cars would throng the roads, robots would kill thousands of additional jobs, Bitcoin prices would hit $60,000, so and so forth.
But marijuana stock investors have their eyes peeled for July 1, 2018. That’s the day Canada will legalize pot, to become the second country in the world, after Uruguay, to fully legalize its use for medicinal and recreational purposes.
Canada’s pot revolution has already given us some of the hottest stocks in 2017, but this industry would truly thrive after full legalization.
While the major industry players continue to steal the limelight, CannTrust is quietly building its bases.
We believe investors may have a unique opportunity to multiply their investments in this little-known marijuana company. Keep close tabs on it, because CannTrust stock could turn out to be the best marijuana stock in 2018.