Terra Tech, Corp. (OTCBB:TRTC) Slides Despite PR About Branching Business

Terra Tech, Corp. (OTCBB:TRTC), a previous in-demand MMJ stock, is struggling to keep the 50-cent levels. This Thursday, the ticker slid down a modest 6% to $0.4702, as selling expanded a bit to $1.33 million. In the past few days, TRTC is being sold off, as even news of its business development are not enough to stoke the enthusiasm.

The latest update from TRTC concerns its specialized subsidiary, MediFarm LLC. The marijuana company announced it completed filings for the special use permit process for medical marijuana licensing in unincorporated Clark County, Nevada. Also, MediFarm applied for licenses for four medical marijuana applications; two Dispensaries, one Cultivation Facility and one Production Facility.

While this sounds like a handful of activities, we have to wait and see whether the process is completed and the actual businesses start to run. So far, many other small MMJ companies announced they started the licensing process, but few OTC-traded companies are actual sellers. Even TRTC still holds its main activity to be greenhouse agriculture, and the latest reports list this activity as the main source of revenues.

And investors’ forums claim that TRTC right now does not grow its own produce, but merely resells at a markup. Also, the area listed as the growing facility of TRTC at the address of “283 Country Road 519, Belvidere, New Jersey” does not show any greenhouses, and is nothing but an open field.

At the same time, investors have always seen TRTC as a company with great potential. The only thing is that the whole MMJ sector runs on that expectation, and so far, almost two quarters into 2014, very few OTC companies are giving indications of success. The bid is mostly to boost the stock price, but the growth could not continue forever.

TRTC resembles the style of Growlife, Inc. (OTCBB:PHOT), the producer of greenhouse lights and supplies. PHOT chose a business model that is central to the legal cannabis business model. Unfortunately, the ticker was one of the first to fall under the new SEC measured and be suspended for over-hyped publicity. After the suspension ended, PHOT crashed to a lower price range. PHOT now continues sinking, from $0.25 toward $0.13.

A few weeks ago, we thought GreenGro Technologies, Inc. (OTCMKTS:GRNH) was finished. The ticker was already tired while TRTC continued to rise. But for now, GRNH is at least sliding at a lower pace. With small daily losses, GRNH wiped out a total of 50% of its stock price in the past month. Currently, the ticker is very thinly traded and hovers around $0.25.

If you still like the former leaders in the MMJ sector, and expect a return, keep in mind that the beginning of 2014 was a time of unusual enthusiasm that may never repeat. The higher tier of TRTC may be appealing, but keep in mind that all OTC companies hide risks, especially ones that are rising in what experts call bubble conditions.