11/27/2018 5:00 am EST

Focus: CONSUMER

Marijuana-related companies look likely to have raised $8 billion from investors so far in 2018. And that’s understandable — estimates are that it could be a $150 billion sector within a decade, explains Tony Daltorio, editor of Growth Stock Advisor.

The growth in the marijuana sector has been greatly aided by recent developments — the legalization of pot by Canada in mid-October and the Democrats winning control of the U.S. House of Representatives. The latter makes it more likely the U.S. will legalize cannabis nationally.

One company that is definitely on my list is CannTrust Holdings (CNTTF), which will be listing soon on the NYSE. It is in active discussions with a number of firms in the beverage, food and cosmetics industries and expects to announce a deal within the next two months.

The chairman of CannTrust, Eric Paul, told Bloomberg “Ideally, it would be great to have a bunch of brand partners. We’d like to find the best partner for every one of those verticals (beverages, food, etc.)”

I was impressed too with its third results. Here are some of the highlights:

Record revenues of $12.6 million, a 105% increase from the comparable prior year period Operations for the quarter resulted in positive EBITDA and positive net income Active patients increased to more than 50,000, a 61% increase from the comparable prior year period Entered into supply agreements with 9 Canadian provinces to supply recreational cannabis across Canada Made its first shipment of cannabis oil to Denmark – the only cannabis oil accepted in Denmark Partnered with Australia’s Gold Coast University Hospital on a six-month study designed to evaluate the efficacy of CannTrust CBD capsules in slowing the progression of Amyotrophic Lateral Sclerosis (ALS) progression Partnered with McMaster University on medicinal cannabis research for chronic pain and for designing more effective, safer treatment protocols in public health policies

And despite a 20% move up after the earnings announcement, CannTrust stock sells at a much cheaper valuation than its peers.

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