Terra Tech Corp. (OTCMKTS:TRTC) Climbs on Positive PR
In yesterday’s session Terra Tech Corp. (OTCMKTS:TRTC) picked up speed in both price action and volume, closing over 7% up on 4 million shares traded. The price landed at $0.51 flat by the closing bell.
To recap briefly, last Tuesday TRTC spiked on news of being granted marujuana cultivation and production permits in Clark County, Nevada. The pop was surprisingly brief and the gains were wiped quickly over the course of the next few sessions. The price went back up yesterday, assisted by a press release concerning the fresh market product side of TRTC‘s business.
The company announced that Living Herbs produced by TRTC subsidiary Edible Garden are now shipping to Walmart locations in the Northeast, as well as to stores of the Stew Leonard’s chain in two northeastern states. The news managed to push TRTC up, which is no wonder, considering Walmart’s name is in the announcement.
The company further stated it’s ‘ramping up production’, which is welcome news, considering the very bold revenue goals TRTC set itself earlier this year. In mid-April TRTC published a press release containing revenue guidance of $7 million for all of 2014. This does not take into account any possible marijuana revenues and relies on a massive boost of Edible Garden sales.
Even though the seasonal nature of revenues means a boost in Q2 and Q3, just how much will TRTC need to up its game if it intends to meet the bold $7 million annual revenue mark? In the four quarters over which TRTC had Edible Garden as a subsidiary selling leafy greens, the company made $2.6 million in revenues. Q1 of this year saw revenues of $560 thousand. In order for TRTC to meet its 2014 guidance, the company would need to make an average of $2.1 million in quarterly revenues each quarter. Considering last year’s seasonally best quarters had revenues of well under $1 million, TRTC will really, really need to ‘ramp up’ to get to $7 million in market produce alone by December.
It remains to be seen whether yesterday’s climb will be erased as quickly as the previous one or Walmart’s name is enough to propel TRTC higher. Tranzbyte Corp. (OTCMKTS:ERBB), another pot stock that rose to popularity and heavy volume trading in 2014, dropped 4% yesterday, despite publishing yet another upbeat PR around noon.
