Jeffries says you should own Canntrust.... CannTrust Holdings: $11.41 (US) target price, representing upside of 24%
CannTrust Holdings (NYSE:CTST), which just uplisted to the New York Stock Exchange this past Monday, is another grower that Jefferies thinks you should own. Once again, I agree wholeheartedly, with CannTrust fully expecting to yield north of 100,000 kilos a year when at full production capacity.
What makes CannTrust such an intriguing company is its focus on hydroponic growing at its Niagara and Vaughan facilities. Hydroponics involves growing plants in a nutrient-rich water solvent as opposed to soil. Since the company has relatively inexpensive access to water and electricity in both locations, hydroponics offers a high-yield, low-cost means of growing pot. Plus, with the Niagara facility also employing moving containerized benches -- i.e., a perpetual harvesting system -- production should be far less lumpy compared to its peers.
Of course, CannTrust had itself a bit of a scare recently. Permitting delays stifled a proposed 600,000-square-foot expansion at Niagara in the town of Pelham for roughly six months. Recently, CannTrust and Pelham agreed on a 390,000-square-foot expansion, albeit with added automation to improve yield and efficiency. If I were a betting man, I'd count on CannTrust making acquisitions in the not-so-distant future to further increase its annual output in light of its Niagara permitting holdup and reduced expansion (based on square footage).
https://www.fool.com/investing/2019/02/28/5-marijuana-stocks-you-should-buy-according-to-inv.aspx