Terra Tech Corp (OTC:TRTC) Won’t Give Up That Easily
Nine days ago we wrote about Terra Tech Corp (OTC:TRTC) and the hype created around them by pumpers, BuyPennyStocks. We showed you that they weren’t exactly flourishing when it comes to financials, we showed you that there are a lot of unknowns around them and we mentioned that investing in promoted penny stocks is extremely risky.
Since then there has been a lot of commotion around TRTC. Over the course of just eight days a total of five press-releases saw the light of day, and the paid promoters showed that they haven’t given up hope just yet with ShazamStocks sending another email about TRTC on February 12.
This could mean two things: either TRTC are extremely busy at the moment and the good news just keeps coming and coming, or they are simply fighting for a place under the spotlight. Having read through all the boring articles they published, we believe that it’s the second option is more likely.
The news is full of forward-looking promises and some of them are not even connected directly to TRTC. They are about a company called GroRite who are an acquisition target for TRTC. Being an acquisition target means that only a letter of intent has been signed which means that all TRTC can do is keep their fingers crossed and hope that the projected revenue will turn come to their treasury one day. We’re pretty sure that shareholders are hoping for the same since, as we mentioned the last time we wrote about them, TRTC are not exactly flush with cash, so even if the acquisition does take place, a lot of shares will be issued which means that dilution is all but inevitable.
And while GroRite’s acquisition takes center stage, there are absolutely no news related to the trial against the CEO of the company, Mr. Derek Peterson, that is supposed to take place really soon. Information about the case is sketchy at best and this bothers potential investors who want to make sure that everything is OK before they spend any money. We reckon, rightly so.
The result of all this is that the stock has been on a downward slope for a the last few days and yesterday it the losses were substantial with TRTC wiping off around 30% of its value. This all goes to show that cheap publicity and promises of wealth and fortune are far from enough to guarantee solid share performance. Unfortunately, having in mind their behavior so far, we expect that the management team will come up with yet another piece of news that will again boost the company’s credibility with inexperienced investors and give the price another lease of life. How long will that last, though, is anyone’s guess.
One thing that leads to believe that TRTC is anything but a long-term investment, however, is the fact that the promotional campaign that started at the end of January and ended with ShazamStocks’ email a couple of days ago was not the first one for them. TRTC were featured in a number of emails at he beginning of October 2012, and you can see from the chart how badly things ended up when the publicity was gone.
Of course, TRTC are not the only company that goes down after the hype is over, there are many more like them, in fact. Santa Fe Petroleum Inc (OTC:SFPI) is a classic example. They got pumped by ShazamStocks back on January 24 when they opened at $2.15. Yesterday’s session ended at just $1.45.
While TRTC fared better than other promoted penny stocks, they are far from the solid performer they want to be. We reckon that the management should concentrate more on the actual well-being of the company and less on the public awareness.