GreenGro Technologies, Inc. (PINK:GRNH) Flourish

GRNH.pngHave you ever thought: “I need to find a more environmentally way of growing my medical marijuana.”? If you have, then GreenGro Technologies, Inc. (PINK:GRNH) probably have the solution for you, if you haven’t you might still want to take a look at GRNH because there has been quite a lot of commotion around them recently.

If we have to be completely honest, the hydroponic growing devices that GRNH offer are not entirely aimed at the growing marijuana market but they do say that cannabis will grow happily in them as well. The way their shares behave, however, is what we’re most interested in.

After jumping high at the beginning of the month, there was a few days during which the stock calmed down a bit, and yesterday they amazed everyone again by soaring nearly 30%. The volume has been above average since the start of February as well, and that got us thinking: “What’s all the fuss about?”.

It’s a tricky question, this. Yes, medical marijuana and the devices that help you grow it have indeed been among the hottest topics in Pennyland recently, but we doubt that this solely is enough to cause such spikes. We checked the database and we can’t see any paid promotions being carried out either. The latest piece of news that came out of their headquarters dates to about week ago and it seems to have been taken out of a macroeconomics text book, and indicates no current or future developments around GRNH. It’s fair to say that we were baffled at this point.

Nevertheless, the jumps in the price are a fact and we decided to check if GRNH deserve the $0.13 per share price that it has right now. In a word, no, it doesn’t. Their market cap as per yesterday’s closing price is more than $16 million dollars, so it’s only normal to ask yourself: “What do I get for this sort of money should I decide to take over GRNH some day?”. We have summarized the answer below:

  • cash: $1,838
  • current assets: $14 thousand
  • current liabilities: $164 thousand
  • revenue: $7,200
  • net loss: $50 thousand

1GRNH_logo.jpgIf there is something positive to be said about the GRNH‘s latest filing, it would be that Q3 of 2012 seemingly went better than the period a year ago but they still have a massively long way to go.

So who is going to help them negotiate the many obstacles in front of them? Well, their CEO is a person called David Rudat, and he is described by the official website as having tonnes of experience and they even say that, at one point in his career, he worked as a city manager. You’re probably thinking: “If he can manage a whole city, he should have no problem with a Penny stock company, right?”. Well, he became quite famous while being a manager at the city of Orange in California and there has apparently been a scandal where Rudat allegedly caused some conflict of interests. Some other articles appeared recently stating that he also broke the California Retirement Law.

GRNH_HQ.pngOne of the first things Mr. Rudat did when he was appointed CEO of GRNH was to establish a new headquarters for the company. It’s not yet updated on their OTC Market page and in their filings are too old to reflect the change, but the address is present on GRNH‘s website. We decided to see what sort of accommodation Mr. Rudat has found for his prospering company, and you can see it for yourself in the picture on the right. We’ll leave it up to you to decide what effect this building will have on GRNH‘s credibility.

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