Growlife Inc. (OTCBB:PHOT) – Going Down Once Again
After the optimistic session they had on Wednesday, which added close to 18% to their price per share, Growlife inc. (OTCBB:PHOT) managed to lose them in the next two days. On Friday they dropped down to $0.047. The traded volume of 7 million shares was still rather large but nowhere near the mid-week’s heights.
As has been the case in the last couple of months the positive surges of the stock brought on by the PR press releases have been brief at best. Even the article regarding the start of their national TV ad campaign failed to generate any enthusiasm and the stock fell by 5% on the same day.
For now PHOT has seen support at the $0.04 mark and have bounced back from it a couple of times. The problem is that their financial situation is far from encouraging for investors. They finished the first quarter of the year with the following results:
- $246 thousand cash
- $661 thousand total current assets
- $312 thousand total current liabilities
- $760 thousand revenues
- $1,1 million net loss
The end of the second quarter is closing in and we will be waiting to see if these numbers have improved.
For now in a attempt to lure investors back they paid 620 thousand rule 144 common shares to Grassroots Research for the publication of an extensive report on the company. Even though this report was made publicly available last week and PHOT was issued a price target of $0.22 the movement of the stock was barely affected.
The slump suffered by PHOT has been shared by all the companies that decided to jump in the medical marijiana. The hype has almost died out since its height back in February. The bellwether of the sector – Medical Marijuana, Inc. (OTCMKTS:MJNA), dropped to its four-month low on Friday. It has lost more than 70% of its value and has been dropping down since shareholders expressed suspicions about the accuracy of the companies financials.
Cannabis Science, Inc. (OTCMKTS:CBIS) shares an almost identical chart. The company has been reluctant to release any news about their activities but they are going a bit too far. Currently they have been given the limited information symbol by OTCmarkets due the their failure to submit the financial report for the first quarter of the year.
PHOT have been able to continue with their planned acquisitions and are expanding their product line and availability. Ste stock remains quite volatile and prone to sharp corrections demanding caution before committing to any trades.
