Growlife, Inc. (OTC:PHOT) Continues to Aim for Big League
In the past few days, a noticeable “green revival” started to lift up new and old medical marijuana stocks, and on Tuesday it was the turn of Growlife, Inc. (OTC:PHOT) to show more robust movement after weeks of drifting sideways. 
The ticker added ore than 27% to $0.059 after it styled itself “voice of the medical marijuana industry” in a press release, promising to open a TV studio and run campaigns to popularize its business, in addition to selling hydroponics systems. 
Added to the hype of the holding’s expansion was the newest financial report on the 2012 totals. Here is what PHOT can rely on for its ambitions to spearhead the PR campaign for medical marijuana:
- $36,602 cash
- $1.2 million total assets
- $1.6 million total liabilities, of which 1 million convertible note
- $1.4 million revenues
- $2.1 million net loss
It seems PHOT has been quite busy in the last 12 months, and if debt plus losses does not overburden the company, it could hold on for a while more. Also, there is the possibility for dilution as the convertible stocks mature. But PHOT has proven to be serious about its business model and so far can be seen as different from small cap players that only in the past few weeks joined the cannabis bandwagon.
As a warning, the idea of PHOT to promote cannabis use through various media is still at the stage of a preliminary agreement. The partner-to-be is pink sheet company Strategic Global Investments, Inc. (PINK:STBV), planning to create sites and media to promote the industry.
The last time PHOT was promoted was at the end of January last year. Since then, the ticker saw some hard times. In the past few weeks, lesser companies such as Neutra Corporation (OTC:NTRR) announced their involvement with the marijuana industry and saw their graphs skyrocket. Bigger contenders such as Medical Marijuana, Inc. (OTC:MJNA) are still drifting sideways.
PHOT indeed is skillful with communication, providing press releases with original content every few days, so this has helped the ticker keep its levels and not drop too far at the end of promotions. Still, it is best to realize a relatively cheap stock is prone to sharper corrections, and plan your time horizon and acceptable losses accordingly.
