Terra Tech Corp. (OTCMKTS:TRTC) Shoots Back Upwards
Terra Tech Corp. (OTCMKTS:TRTC) had been in decline after its amazing mid-March climb. The prolonged slide took it down to a low of $0.368, but now, after yesterday’s 19.85% jump, it appears to be back on its feet.
It is quite likely that traders realized that the stock is at its lowest point since the beginning of February and decided to “load up on cheapies”. It could be that the statement of TRTC‘s CEO, Derek Peterson, that the company is “hoping to work with eligible nurseries to grow and dispense a low-THC strain of marijuana that soon will be legal in the state” launched the ticker up. It could be a combination of those factors, or just a fluctuation of the volatile market that pushed TRTC to the closing price of $0.489.
The end result is clear – 4 million shares changing hands, a nearly 2 million dollar volume. But is this jump warranted?
Sure, share prices are at a low point, and many marijuana-stock enthusiasts are ready to take this as a cue to buy. However, any investor worth his salt knows that there is more to it than a low point of entry. Due diligence should always be done before committing to a stock of any kind, and this goes double for the high risk pot-stocks.
And in the case of TRTC, even the most superficial research yields the bitter realization, that the company is far from the bastion of financial integrity its supporters make it out to be. TRTC‘s annual report for the fiscal year ended Dec 31, 2013 had this to say on the matter:
- Cash – $27 thousand
- Total Current Assets – $243 thousand
- Total Current Liabilities $3.9 million
- Total Revenues – $2.1 million
- Cost of Goods Sold – $2 million
- Net Loss – $6.1 million
As for the “potential” pot-stock fanatics see in the company, consider this. TRTC just all but declared that it is currently “hoping to work” on a project, assuming that marijuana “soon will be legal in the state”. Does this mean that TRTC is basing its business plans on blind hope, rather than proven facts and existing partnerships? What does this say about a companycurrently valued at $114.3 million on the market?
Investors are encouraged to take these facts into consideration when making up their minds about TRTC.
Another high risk pot-stock company that is currently climbing to the top of the charts is Vapor Group Inc. (OTCMKTS:VPOR), formerly known as AvWorks Aviation Corp., who jumped 21.39% yesterday.
