GreenGro Technologies, Inc. (OTCMKTS:GRNH) Tumbling Down Again

The sector-wide surge that gave wings to almost every marijuana ticker on the OTC Markets did GreenGro Technologies, Inc. (OTCMKTS:GRNH) stock prices a ton of good, but now the rush seems have lost most of its momentum. As a result, GRNH lost about 15% of its market value in the last two trading sessions.

This most recent Marijuana hype was more or less sparked by rumors that President Obama will be nominating a known marijuana legalization supporter for Assistant Attorney General and further fueled by publications on CNN Money and the statements made on the Gubernatorial Candidate Forum of Arizona. The market exploded with activity, with dollar volumes reaching record levels again, but it was clear that this state of developments could not last for very long.

The reason for that is simple – the majority of the marijuana stocks on the OTC Markets don’t really have any merits that could keep them afloat for very long once the dust settles. As the charts can attest, hype volatility tends to die out a day or two after the exciting development, leaving ticker such as Hemp Inc. (OTCMKTS:HEMP), American Green Inc. (OTCMKTS:ERBB) and GRNH tumbling.

Naturally that is to be expected – after all we’re talking about companies with more than a few serious shortcomings. A glance at GRNH‘s latest financial report reveals a grim situation indeed – it shows evidence of aggressive dilution, low cash on hand and toxic funding. Such a combination is usually enough dissuade most investors, and it is precisely because of it that GRNH‘s descent will probably last until until the next wave of hype hits the market.