Terra Tech Corp. (OTCBB:TRTC) Pumped By Hero Stocks
If you have followed our recent coverage of the medical marijuana market you would know of the heightened interest in the industry after the news from August 29. Even though Terra Tech Corp. (OTCBB:TRTC) weren’t featured in the articles about the announcement that the federal government will no longer interfere with state laws regarding medical marijuana they decided to take the matter in their own hands.
A paid promotional campaign was initiated, but its insufficient to continue to stock’s ascent. The uprise came to a halt on August 29, after around 10 trade sessions of climbing the charts. The ticker lost 18% from its value just as the news concerning the medical marijuana law rolled out, while companies like Medical Mrijuana Inc. (OTCMKTS:MJNA), Hemp, Inc. (OTCMKTS:HEMP), Canabis Science Inc (OTCMKTS:CBIS) and Growlife Inc. (OTCBB:PHOT) were rising in price on big volumes.
The last day of the month went better, as TRTC gained 5%, but still, the stock didn’t manage to regain its previous price. The volume of traded shares was lower than the previous days with 1.7 million that had switched hands in the end of the day generating a total trade value of $247 thousand.
It all seems like the hype created after TRTC were featured in a news segment at CNBC discussing the warning from the Financial Industry Regulatory Authority (FINRA) about the threat of medical marijuana stock scams has come to an end. As we wrote in our previous article TRTC weren’t accused of any misconduct, but were featured on a list alongside Cannabis Science Inc (OTCMKTS:CBIS), CannaVEST Corp. (OTCBB:CANV) and Converted Organics B WTS (OTCMKTS:COINZ) while there was a discussion about medical marijuana companies that may never become profitable.
The biggest problem that we detect with TRTC at the moment is the fact that, indeed, they just can’t make a profit from their business. You can take a look at the numbers of prime interest from their Q2 report below.
- cash: $169 thousand
- current assets: $1 million
- current liabilities: $4.3 million
- quarterly revenue: $665 thousand
- quarterly net loss: $1 million
Looking at these numbers we can’t forget to mention that the cost of the sold goods is $659 thousand (99%) out of the $665 thousand in revenues that they have. At this moment it seems that the company is running a charity, so if you want to help sick people with medical cannabis at your own expense TRTC is your choice.
