Terra Tech Corp. (OTCMKTS:TRTC) Heats Up on Clark County Hearings
Yesterday the sails of Terra Tech Corp. (OTCMKTS:TRTC) caught a favorable wind. The company’s share price gained 14% and TRTC traded for $0.74 per share by the closing bell. Share volume remained heavy, at 7.2 million shares changing hands.
Just about every investor who currently has a position in TRTC is tingling with anticipation as the Clark County commission started the review process of marijuana dispensary applicants yesterday. The official agenda of the commission is available online and the two applications TRTC submitted (numbers 18 and 52 on the list) can be examined in detail.
Yesterday’s hearing covered the first of the dispensary locations the company had applied for and the second one will be reviewed today. Expectations are running high and projections about what will happen if TRTC gets approval for both sites are again bordering on the ridiculous. While it’s a known fact that the company’s management has experience in running a successful dispensary business in the form of CEO Derek Peterson’s private California pot shop, this hardly means approval in Clark County will send TRTC to the NASDAQ with a share price of multiple dollars.
The approval of applicants is also ‘contingent upon obtaining a license from the State of Nevada’. While this is a step in the right direction for TRTC if it seeks to become a major player among public marijuana companies, it’s not some kind of magical trick to end all problems the business is having at the moment. The last financial report for the quarter ended March 2014 showed that TRTC is still operating at a gross margin that is a fraction of a percent and the company’s net loss is piling up at an alarming rate, with $4.9 million for Jan-Mar 2014.
With the hearings ending tomorrow, any official word on the outcome as far as TRTC‘s concerned will likely come out on Monday. Excitement will likely push the price even higher before that, especially when there’s people on investor forums willing to go the extra mile to get everyone pumped up. It’s not the first time we hear the ‘next big thing’ story and a more levelheaded approach to the current situation may be healthier.
Potential marijuana revenues are still a long way into the future, even if we assume TRTC does get approved in Clark County. Traders should also keep in mind that the hearings are related to dispensaries only and don’t cover TRTC‘s applications for a cultivation and a production facility.
