Greengro Technologies Inc. (OTCMKTS:GRNH) Gets Hot Again
Greengro Technologies Inc. (OTCMKTS:GRNH) exploded above the dime threshold once more yesterday – but how long will it be able to keep its gains?
Well, that depends on how long this latest hype surge that has swept up the ticker will last. Seeing as how there’s a UN meeting on 19-21 April, with the topic of discussion being drugs and drug policies, it is unlikely that heads will cool off before then.
Unfortunately for investors, hype is not the only factor pulling the ticker in a particular direction. There’s also the small matter of GRNH‘s actual state – which, as its financial reports can thoroughly attest, is far from rosy:
- Cash – $39 thousand
- Total Current Assets – $747 thousand
- Total Current Liabilities – $260 thousand
- Annual Revenues – $569 thousand
- Annual Net Loss – $3.5 million
Still, experience teaches that a ticker high on marijuana hype is not very likely to crash because of the mediocrity of the company in question – even if said entity’s lack of commercial success is plain and its financials – disconcerting, and goes against the very nature of the event that triggered the hype jump.
No, more often than not, when a hyped-up marijuana ticker crashes, it is because the repercussions of the stock-related shenanigans of the company in question have finally caught up with it.
And GRNH has more than its fair share of ugly things to investor value by means of toxic dilution. Let’s just say that approximately 66 million of its nearly 270 million shares outstanding have come into existence during the fiscal 2015. The overwhelming majority of those were issued for “consulting services” of an unspecified nature, and approximately 3.4 million shares were issued directly in return for financing, at a price of just $0.04.
All those factors don’t really bode well for the chances of GRNH retaining its ground. Will they topple the ticker, or will its momentum hold? Only time will tell – but a word of fair warning is probably in order here. Let the buyer beware.
