Growlife Inc. (OTCBB:PHOT) Jumps On Pumps And Media Hype
Growlife Inc. (OTCBB:PHOT) had just made a session in the red when the latest CNN documentary on marijuana hit the wire. The film, along with a pump, pushed company stock up 7.92% yesterday.
PHOT‘s last ascent seemed to have ended with the company’s jump on Mar. 11, but yesterday the company closed at $0.545, driven up by the hype caused by a new marijuana documentary. In this CNN special, Dr. Sanjay Gupta gave viewers some fascinating data on medical marijuana and the potential benefits with which the plant can provide society.
The other reason for PHOT‘s latest ascent is a pump by the promoter TheStockPsycho. The tout hit the wire near the very end of the March 12 session, so its effects were mostly felt on the following day. Judging from the charts, it served its purpose well enough. Even now the attention generated by the pump and Dr. Gupta’s documentary is hyping investors and pushing PHOT up, in spite of all the red flags surrounding the company.
To elaborate – the warning signs around PHOT are obvious, numerous and alarming. For instance – the company’s latest financial filings, for the period ended Sept. 30, 2013, are discouraging to say the least:
- Cash – $190 thousand
- Total current assets – $1.2 million
- Net revenue – $1.3 million
- Net loss – $1.8 million
PHOT‘s latest 8-k can also be considered a cause for concern. It showed that, in a special meeting of shareholders on Feb. 7, 2014, PHOT‘s authorized shares of Common Stock have been increased from 1 to 3 billion. The report itself doesn’t specify a reason for this, but investors should be wary of dilution.
Another marijuana company that shot up yesterday is GreenGro Technologies, Inc.(OTCMKTS:GRNH), which jumped 23.82%.