GreenGro Technologies, Inc. (OTCMKTS:GRNH) Drops Below 30 Cents
The stock of GreenGro Technologies, Inc. (OTCMKTS:GRNH) was one of the first that experienced the massive influence of the marijuana hype and at the start of the year surged upwards almost touching on 1 dollar per share. Such an explosive performance couldn’t be sustained for long but in early March they once again rallied up and tried to break through 70 cents. Well, one look at the chart is enough to show that since then things have been rather grim.
Enthusiasm is slowly dying out and GRNH has suffered corrections for 12 out of the last 17 sessions. During Friday’s trading the negative momentum accelerated even further and the stock lost close to 20% of its value ending the day at $0.29, the lowest point for the company for the past two months. The 6 million shares traded during the session also surpassed the volumes from the past three weeks.
The last PR statements made by GRNH went by unnoticed by investors and failed to even slow the descent of the stock. Back in March they acquired a technology for an electronic vaporizer with a whole line of products planned for April. Well, we are nearing the middle of the month and there has been no new information about it.
Investors are also worried about the annual financials of the company. GRNH were supposed to file their report for 2013 by the end of March. That didn’t happen and instead they submitted a notification of late filing saying that they expect to be ready on April 12. That didn’t happen as well. The numbers contained in the report, when it gets filed, are going to play a big role in determining the fate of the stock because at the end of September GRNH‘s financial state was far from encouraging:
• $5 thousand cash
• $42 thousand total current assets
• $156 thousand total current liabilities
• $7 thousand revenue
• $221 thousand net loss
• $42 thousand total current assets
• $156 thousand total current liabilities
• $7 thousand revenue
• $221 thousand net loss
Now the company will have to show significant improvement if it wants to keep at least some of its price gains. Relying on hype alone is not going to work as easily especially with the massive blow dealt to the sector last Thursday. In a shocking turn of events the stock of Growlife, Inc. (OTCBB:PHOT) was suspended by the Securities and Exchange Commission (SEC) and the entire industry plunged for the bottom of the chart. Investors should also tread carefully around the stock of Cannabis-RX Inc. (OTCMKTS:CANA) which in addition to all the risks inherent to the marijuana pennystocks has now been targeted by a $1.8 million promotion.
