CannTrust Holdings Inc (NYSE: CTST) Due For A Rebound

CannTrust Holdings Inc (NYSE: CTST) has been one of the most rewarding cannabis stocks over the past year, especially if you're a trader. The stock has trended very well from both the long and the short side. Now the stock has started trending down after earnings and looks close to bottoming. The $7 level represents very strong support and one which we believe CTST will bounce and resume its uphill climb. Taking a look at this NYSE cannabis player, there's a lot to like with CannTrust. CTST Daily ChartCTST BackgroundFirst up, a little background info for those that aren't familiar with CTST.CannTrust is a federally regulated licensed producer of medical and recreational cannabis in Canada, and the 2018 Canadian Cannabis Awards "Top Licensed Producer of the Year". Founded by pharmacists, CannTrust brings more than 40 years of pharmaceutical and healthcare experience to the medical cannabis industry and serves more than 68,000 medical patients with its dried, extract and capsule products. The Company operates its 450,000 sq. ft. Niagara Perpetual Harvest Facility in Pelham, Ontario, has been permitted to construct another 390,000 sq. ft. facility in Pelham, and prepares and packages its product portfolio at its 60,000 sq. ft. manufacturing center of excellence in Vaughan, Ontario.CannTrust is developing nanotechnology to develop new products in the medical, recreational, beauty, wellness and pet markets. The Company has established its international footprint through a strategic partnership with Cannatrek Ltd. in Australia and a joint venture with STENOCARE in Denmark. The Company has also partnered with Breakthru Beverage Group through Kindred Canada, for recreational distribution in Canada. CannTrust is committed to research and innovation through partnerships with McMaster University in Ontario and Gold Coast University in Australia, which was designed to contribute to the growing body of evidence-based research regarding the use and efficacy of cannabis.Outdoor grow expansionThis week, CannTrust closed the first of its previously announced transactions to acquire 200 acres of outdoor cultivation land. The Company has purchased four parcels of land for cash, representing 81 acres of land, to advance its outdoor cannabis cultivation operation in British Columbia.With the closing of this land acquisition, the Company has now secured 81 acres of land on which it will proceed to develop its outdoor cultivation capacity. CannTrust has commenced fencing of the property, installation of security systems and other infrastructure required for commercial production.In total, the Company expects to secure over 200 acres of total land for outdoor cultivation. Together these purchase and lease agreements are expected to add 100,000kg to 200,000kg of annualized production capacity in the third quarter of 2020, for an expected combined annualized production capacity, including the Company's Perpetual Harvest Greenhouses in Pelham, Ontario, of between 200,000kg and 300,000kg, subject to receipt of Health Canada approvals.Earnings resultsIn our opinion, the selloff after earnings was just profit taking. The results from CannTrust were impressive. Among the highlights:

• CannTrust reported record revenue of $16.2 million, a 132% increase from the fourth quarter of 2017.
• Active patient count increased to 58,000, up from 37,000 at the end of the prior year, an increase of 57%.
• The Company sold 3,407kg of dried cannabis equivalent, a 4.5x increase from 758kg in the fourth quarter of 2017.
• Cash costs per gram decreased to $2.94 from $5.16 in the fourth quarter of 2017.
• CannTrust was voted Top Licensed Producer of the year and received six other service and product awards at the 2018 Canadian Cannabis Awards.
• The Company closed the purchase of a 19.4-acre property on land adjacent to its Perpetual Harvest Facility in the Town of Pelham, which will be used to construct its Phase 3 expansion and bring total production capacity to 100,000kg per year upon its completion.

Bottom lineCurrently trading with a market cap of $788 million, CTST is one of the best cannabis plays for investors. The company remains one of the few listed on the NYSE that institutional investors can bet on. We believe this selloff is only temporary and that CTST is set up for a nice bounce to new highs as 2019 rolls along.We will be updating our subscribers as soon as we know more. For the latest updates on CTST, sign up below!Disclosure: We have no position in CTST and have not been compensated for this article.Photo by Markus Spiske temporausch.com from Pexels