Terra Tech Corp. (OTCMKTS:TRTC) Can’t Break Fall
It’s reporting season for the majority of companies on the OTC and things are moving, spurred along by the release of annual and quarterly reports. Terra Tech Corp. (OTCMKTS:TRTC) filed its very own annual report for 2013 as well and the report got it moving but it was not in the direction investors hoped for. The company’s share price has lost roughly 30% since the publication of the report in a five-session red streak.
Yesterday TRTC closed down in double digits, over 11% in the red. The press release published yesterday, around noon, did nothing to change the daily movement. TRTC moved down sharply immediately after the open and wobbled to its red close. The news released by the company concerned a new market chain that now carries Edible Garden green produce.
TRTC announced that its subsidiary’s products are now sold through Marsh Supermarkets, a Midwest chain that owns several dozen stores. Traders, possibly hoping for more marijuana news, gave out a collective unimpressed sigh and barely reacted.
The reaction to the company’s annual report is becoming quite obvious now, with TRTC having dropped from $1.14 per share on the day of the filing to its last close of $0.795. Despite the significant revenue growth on a YoY basis visible in the 10-K, TRTC‘s gross margin was even thinner in 2013, at just $88 thousand. Expenses squashed that figure to a loss in the millions.
The company made rather a lot of noise about medical marijuana, getting major media exposure and voicing some bold plans about the future possibilities to use its hydroponic equipment and expertise to grow marijuana. All this may have left traders with somewhat unrealistic expectations that TRTC will turn into a pot money machine overnight and expectations about the annual report may have been skewed. It’s not too likely that the next due quarterly will contain any figures derived from marijuana, as TRTC is still generating its revenues from the potherbs it grows.
Other marijuana stocks that slipped yesterday include Growlife, Inc. (OTCBB:PHOT) who closed nearly 9% down. Tranzbyte Corp. (OTCMKTS:ERBB) dropped further, closing over 14% in the red.
