GreenGro Technologies, Inc. (OTCM MKTS:GRNH) Unable To Stop Its Drop
Last week the stock of GreenGro Technologies, Inc. (OTCMKTS:GRNH) alongside the whole marijuana sector suffered through multiple days of correcting. It seems that the hype that pushed GRNH from less than 10 cents to $1.2 in just a couple of days has finally lost it strength. With the nearly 8% lost on Friday the stockis now trading for $0.37 per share.
This, however, still leaves the company with a market cap of $55 million, a number that is grossly disconnected from its fundamentals. According to their latest quarterly report at the end of September GRNH had:
• cash: $4.9 thousand
• total current assets: $42 thousand
• total current liabilities: $156 thousand
• revenues: $7.2 thousand
• net loss: $221 thousand
• total current assets: $42 thousand
• total current liabilities: $156 thousand
• revenues: $7.2 thousand
• net loss: $221 thousand
For the nine months of 2013 covered by the report GRNH had a net loss of more than $800 million and more than likely for the whole year that number will be bigger than a million. In addition the accumulated deficit has surpassed $3 million.
On Thursday the management team tried to stop the slide of their stock by issuing a PR article announcing that they have broken ground on the second greenhouse project located in Lincoln, California. It seems though that investors weren’t really impressed because the greenhouse will have nothing to do with marijuana and instead will be used to grow lettuce, tomatoes and culinary herbs. Although the announcement was able to save the company from closing in the red the stock still finished the day at $0.4 significantly lower than its opening price.
When markets open tomorrow we will see if the recent interview with President Barrack Obama will manage to 
reinvigorate the sector. In the interview the President said that he considers marijuana to be no more dangerous than alcohol.
reinvigorate the sector. In the interview the President said that he considers marijuana to be no more dangerous than alcohol. One of the few marijuana stocks that didn’t drop on Friday was Cannabis Science Inc. (OTCMKTS:CBIS). The company surged upwards by more than 21% and is once again trading for 10 cents per share. Even if you are optimistic about the future of the marijuana industry you should not forget that these companies are still pennystocks and carry all of the associated risks.
