Terra Tech Corp. (OTCMKTS:TRTC) Slips as Pot Sector Tumbles

In yesterday’s market session there was a tremor that shook the entire pot stock sector of the OTCBB. Terra Tech Corp. (OTCMKTS:TRTC) was not the biggest percentile loser but it was the most heavily traded marijuana stock on the OTC, dropping 16% on 11.6 million shares traded.

The entire sector slipped yesterday, with virtually every heavily traded marijuana ticker going red, most in double digits. The most likely cause for this was a SEC suspension that caught many off-guard. Shortly before the markets opened yesterday, the SEC issued a suspension order for Growlife, Inc. (OTCBB:PHOT).

That suspension very likely impacted the entire pot sector of the OTC as Growlife was regarded by some as one of the few businesses in the field that has a fair shot at success. Trading was halted due to ‘concerns regarding the accuracy and adequacy of information’ and ‘potentially manipulative transactions’, so it would seem everything was not nearly as rosy as some thought, despite PHOT having one of the more passable balance sheets in the sector.

Everyone who has seen more than a couple of OTC companies being suspended will know what usually happens once active trading resumes – demotion to grey market, heavily faded volume and a price slice to levels far below pre-suspension prices. This sort of thing happening to one of the few companies with millions of revenues in the sector and a relatively good reputation among marijuana investor enthusiasts, despite the multiple red flags about it, obviously scared enough people cross-sector into selling. TRTC was among those who logged a massive volume spike yesterday, with share volume doubling against the monthly average.

What PHOT‘s suspension appears to have shown is that it’s virtually impossible to predict which way the wind will blow in what some have called the pot bubble. Whether the scare that has gripped the sector will cut deeper into today’s session and in the immediate future remains to be seen.