GreenGro Technologies, Inc. (OTCMKTS:GRNH) Spirals Downward
GreenGro Technologies, Inc. (OTCMKTS:GRNH) was handling the market stresses well enough for a while. But in the past days, the ticker invited attention again when the falling trend accelerated. GRNH slid more than 17% on Tuesday, reaching $0.24, although the selling volumes were subdued at $1.059 million. 
All the while, GRNH offered constant updates on its hydroponics projects, but the market was already quite accustomed to the company’s presence, so this did little to continue the upward movement. In addition, GRNH has quite limited financial resources:
- $5 thousand cash
- $42 thousand total current assets
- $156 thousand total current liabilities
- $7 thousand revenue
- $221 thousand net loss
At the beginning of the February boom in pot stocks, GRNH moved together with Terra Tech Corp. (OTCMKTS:TRTC). Both tickers were picked for their central position as providers of hydroponics options, a niche that was considered very promising for the legal marijuana sector. Now, TRTC is going through a similar slide, as almost all trading days in April were in the red, with different levels of selling. TRTC has slid from its peak at $1.40 toward $0.63.
The big blow on those two companies came after the suspended trading of Growlife, Inc. (OTCBB:PHOT). In the new week, the activity has not been renewed, but if we have the experience of other tickers that went through a SEC restriction, we may expect a deep fall from the $0.50 levels.
Investors’ forums still see value in the company, though the prolonged fall is causing jitters. Also, GRNH has disappointed with delays in the filing of financial results, and there is no sign that those will be coming soon to awaken the stock price from the doldrums.
The drop in price with GRNH was among the highest in the Marijuana index, where other well-traded tickers shed about 20% in a single trading day. Now, the health of the whole legal marijuana sector is uncertain, as there is a lack of mainstream news. Until laws unroll in other states, we cannot expect the enthusiasm at the beginning of 2014 to be repeated.
If you still want to pick up GRNH for the possibility to return, keep in mind that nothing guarantees the current price positions, which are relatively high in comparison to other well-traded MMJ stocks. GRNH has the advantage of being a well-known name, but almost all companies have seen shrinking trading volumes. Be aware of your objectives and your preferred time frame before jumping into a stock for what looks like a bargain price.
