Growlife Inc. (OTCQB:PHOT) Starts Climbing the Charts Again
Growlife Inc. (OTCQB:PHOT) dropped sharply for two sessions in a row, but is now back on its feet, pushed 7.63% up by online commenters.
Although some time passed since the marijuana rush began and it appeared that the hype had subsided, PHOT‘s behavior on the market disproves that supposition. The ticker still soars on publicity and plummets when the latest marijuana news grows cold.
That is precisely what had happened during these last few sessions. PHOT had jumped on news, crashed hard because of the calm that followed, and is now on the rise again, pushed up by new media exposure. Interestingly enough, the company stock’s rising significantly, despite the last reviews of commenters being mostly negative.
Lately the company’s been called “overhyped”, “overpriced” and “highly speculative”. Although loyal investors find these definitions distasteful, the fact remains that said characterizations are more or less accurate. As are the statements that PHOT has “a negative cash flow” and a “sub-par balance sheet”. The company’s latest 10-Q can attest to that:
- Cash – $190 thousand
- Total current assets – $1.2 million
- Net revenue – $1.3 million
- Net loss – $1.8 million
Traders should also take note of the fact that, despite being financially unsound, PHOT increased its authorized shares of Common Stock from 1 to 3 billion on Feb. 7, 2014. The 8-K report PHOT filed with the SEC doesn’t give a reason for the increase, but investors should watch out for dilution.
Oddly enough commenters and investors still seem to be hopeful and display a staggering amount of optimism regarding PHOT‘s future, in spite of all these obvious red flags surrounding the company.
Other marijuana companies weren’t as successful as PHOT yesterday. Terra Tech Corp. (OTCMKTS:TRTC) and GreenGro Technologies, Inc.(OTCMKTS:GRNH) both stumbled during the same session, falling by 7.14% and 13.24%, respectively.
