Growlife, Inc. (OTCBB:PHOT) Manages to Stay Green
Yesterday the share price of Growlife, Inc. (OTCMKTS:PHOT) managed to scuttle up again, with the ticker closing 7% in the green and stopping at $0.09. Even though share volume is slowly decreasing, it’s still sitting at over 21 million shares traded.
The company came up with another press release yesterday. PHOT announced that its new, seventh retail store will be opening its doors today. The store is located Santa Rosa, California. The news release hit the wire before the market open and PHOT started trading above its last close as soon as the bell rang.
The previous few excited trading sessions for PHOT are easily attributable to an advertisement piece, largely constituting a pump piece, disclaimer and all, that appeared in the company’s PR feed on Yahoo Finance last week and is published on PHOT‘s website. The material in question is by Grassroots Research and sets a price target for PHOT stock of $0.23. What the press release fails to mention is that Grassroots Research received 3 million shares, as well as $2,500 in cash, paid directly by PHOT. So much for objective judgment and believable price targets, it seems.
Even the greatest medical marijuana enthusiasts will probably find fault in a projected price for PHOT within the next 12 months that is nearly five times above its 50 and 200-day moving averages, factoring in the latest figures published by the company as well:
- $160 thousand in cash, a.o. June 2013
- $2.6 million in current liabilities
- $872 thousand in quarterly revenues
- $1.6 million in quarterly net loss
The company did issue a convertible note for $850 thousand in October but considering the note will be convertible at $0.025 per share, this is hardly much of a consolation. It seems the marijuana sector still manages to generate huge share and dollar volumes across the board on a lot of enthusiasm and a bright outlook for the future. Despite this, most of the stocks in it also remain volatile, so caution is advised.
