Growlife, Inc. (OTCBB:PHOT) Jumps on Optimistic News
The mid-October promotion of Growlife, Inc. (OTCBB:PHOT) didn’t go well and the company ended both days it was touted in the red. Recent news, however, have sparked investor interest in PHOT and the ticker recorded a decent gain in yesterday’s session.
The heated trading that we saw yesterday led PHOT to a gain of 12%, despite the massive amount of traded shares. The ticker closed at $0.0588 with a whopping 19 million shares switching hands, that helped generate a trade value of $1.2 million.
PHOT came out with 2 press releases yesterday, one of which was the probable cause for the increase in price. It was centered on a Grassroots report that gave the ticker an estimate price of $0.23 per share in the upcoming 12-18 months, judging by the market trends.
This is a pretty decent price, but the market cap of PHOT is already big enough ($41.5 million) considering the company’s financials.
- cash: $160 thousand
- total current assets: $1.5 million
- current liabilities: $2.6 million
- total liabilities: $3.1 million
- revenue: $872 thousand
- net loss: $1.6 million
Indeed, we see an increase in the company’s revenues, but the net loss has more than doubled also. PHOT‘s cash reserves are also small, despite the fact that we see an increase from the $36 thousand they reported in the end of 2012.
All in all, the medical cannabis industry remains a risky investment choice, so be sure to do a lot of due diligence and weigh out the risks if you have any thoughts of investing in PHOT.
On the bright side, Medical Marijuana, Inc. (OTCMKTS:MJNA) is still hovering around $0.15 per share and is one of the most stable stocks in the OTC Markets. The situation with Cannabis Science, Inc. (OTCMKTS:CBIS), however, is not so rosy and their stock is currently at $0.040.
