Everyone Is Talking About Terra Tech Corp (OTCBB:TRTC) Once Again
It all started back in August 2012 when some newsletters received some money in order to send emails touting Terra Tech Corp (OTCBB:TRTC). The alerts were as optimistic as they could have been and they all talked about TRTC‘s partnership with Family Hydroponics and how it will bring in millions upon millions in revenues. Unfortunately, the results of the partnership were not going to be seen at least until the next financial report which means that investors were either forced to go with the optimism of the emails and press releases or simply walk away. Inevitably, some traders trusted the promises, bought some shares and ended up seriously burned when TRTC crashed heavily.
Then, in September there was another pump. This time the talk of the town was the then new hi-tech environment controllers that are supposed to take care of all your medical marijuana’s needs while you are having a nap. Again, both the emails and the press releases were extremely optimistic and again, there was only one way to find out how great the new product really was – waiting for the next reports. Apparently the investors weren’t as impressed this time and while we did see some movement in the volume, the price remained virtually unaffected.
That is something you can’t say about the pump from October. Back then the promotion was quite a lot bigger, the compensations paid were absurd and so were the claims in the emails. Stock Bomb, for example told us that the price could go up to $2 per share and the revenues could jump from $3 million for 2012 (in actual fact, the revenues for 2012 turned out to be no more than $552 thousand) up to $30 million in just a couple of years. That, apparently, was enough to get investors excited, the volume went up and so did the price… briefly. As you can see from TRTC‘s chart, they managed to lose a total of 47% in a matter of three trading sessions once again leaving a lot of inexperienced investors licking their wounds. And then there was silence…
Until February, that is. Yet another pumping campaign started back then and there were even more promoters involved. Some of them received as much as $40 thousand and they talked about TRTC‘s latest acquisition once again emphasizing on the fact that a lot of states are liberalizing the laws on the use of medical weed which in turn means that this is turning into a multi-billion dollar industry. Traders were excited once again and the demand pushed the price up to a height of around $0.66 per share. By the end of February, however, the ticker was hovering around $0.23 which means that despite all that touting, TRTC had lost around 53% in just a month.
We thought that pumpers will leave TRTC to get back on their feet, and they did… for about two months. The beginning of April saw them feature the ticker in yet another campaign. Once again, it was garnished with all sorts of optimistic press releases and projections about the future growth of the company and, just like during the September effort we did see some movement around the volume, but not much in terms of price increase.
Then in May, they were at it again. The compensations ranged from $10 thousand to $15 thousand and the stories that the pumpers told us were about TRTC‘s latest acquisition as well as the agreement they signed with known toxic funding providers Magna Group. The results were quick to come – 34% wiped out in just four trading sessions.
Now there is a new pump and it’s much the same story – the millions in revenues annually, the rapid growth, the multi-billion dollar industry, the huge potential and all that jazz. We read through TRTC‘s latest financial statement for the first quarter of 2013 and we’re still struggling to see what the promoters are on about. Here are the figures:
- cash: $436 thousand
- current assets: $748 thousand
- current liabilities: $1.4 million
- quarterly revenue: $66 thousand
- quarterly net loss: $1.5 million
It’s fair to say that these financials don’t really suggest that the company is in for the massive growth that the emails are talking about but even if it is, even if they do somehow manage to finally get themselves out of the mess, it really is hard to believe a business venture that has lost around 80% of its value in less than ten months because of all the promotional pressure. That is why we would like to urge you to perform the necessary due diligence before investing any money in TRTC.
