Is CannTrust destined for greatness?.... Is CannTrust destined for greatness?
In assessing CannTrust's fundamental prospects, it's useful to look back at what was a highly momentous 2018 for the company. CannTrust opened a portion of the vast growing space at its Niagara Greenhouse facility, adding 450,000 square feet to dramatically boost the total capacity of its cannabis growing operations. When Niagara is complete, it'll encompass more than 1 million square feet, and CannTrust expects to produce more than 100,000 kilos of cannabis annually as a result.
In addition, other moves helped to show CannTrust is a major player in the market. Four consumer brands, including the ideally named Peak Leaf brand, will target various categories of marijuana users, and CannTrust made efforts to offer alternative products beyond dried cannabis and pre-rolled joints. New CEO Peter Aceto took the reins as well, and his business savvy has made a big difference even in his first few months as chief executive.
Finally, CannTrust has some attractive attributes that many of its marijuana peers lack. Revenue levels are already comparable with stocks that have significantly higher market capitalizations, and CannTrust has been more successful in generating high margins. That's largely due to the company's attention to product mix, and that has the dual benefit of also differentiating CannTrust's product lines from those of its rivals.
CannTrust's move to the NYSE might not have brought an immediate reward for shareholders, but it reflects the cannabis company's improving prospects. Now that investors have greater access to the stock, CannTrust will be much more on their radar going forward -- and that should pay off if the marijuana producer keeps enjoying the success it's seen so far.
https://www.fool.com/investing/2019/03/02/why-this-marijuana-stocks-us-debut-was-a-bust.aspx