Terra Tech Corp. (OTCMKTS:TRTC) Backing Down
Terra Tech Corp. (OTCMKTS:TRTC) lost another 13.04% of its market value yesterday – a drop which brought it right back to the $0.4 mark.
Presently, TRTC is traded as a pot stock, despite the fact that the company makes no revenues from marijuana. Obviously this fact hasn’t been able to quell the pot-stock traders’ enthusiasm for the company. The lack of actual marijuana production seems to have been pushed to the background by the endless stream of vague and hopeful press releases, that has been the main force keeping the marijuana industry from heading to the bottom of the charts.
The company’s last piece of PR, for instance, boasted a 700% annual growth in revenues. A quick glance at TRTC‘s financials reveals that this probably is not the most important statistic that investors should keep in mind.
- cash – $2.9 million
- current liabilities – $6 million
- quarterly revenues – $560 thousand
- quarterly net loss – $4.9 million
A net loss of nearly $5 million is nothing to brag about, however, so investors aren’t likely to read about it in one of the company’s many press releases, or in the comments of its supporters. Moreover, while it is in fact true that TRTC‘s year over year revenues have risen phenomenally, the company has actually reported less revenues in its latest quarterly than it did in the one before.
Investors are advised to consider the company’s high debt, decreasing revenues and the ever increasing threat of suspension, that could take any marijuana company out at any time, painting the charts of the rest of the sector red. Add a couple of promissory notes worth about $1.6 million, which can be converted for $0.30 to the picture. And while all this is taking place, the company still has a market cap of nearly a hundred million dollars.
Under these circumstances, is it any wonder that TRTC is dropping like a stone, and that most of the other “prominent” marijuana companies, like Creative Edge Nutrition Inc. (OTCMKTS:FITX), that are suffering from similar faults, are going down with it?
