The Expected Crash of Growlife, Inc. (OTCBB:PHOT)

Last week the stock of Growlife, Inc. (OTCBB:PHOT) started gathering momentum in an upward direction, which continued with full force after the start of this week’s trading. The first two sessions of the week went extremely well for the ticker as it gained a total of 44%, but what followed wasn’t really surprising.

With absolutely no news and after the latest paid promotion from September 16 which was worth $1000, the stock crashed on its own in yesterday’s trade session. There wasn’t even the huge dumping of stock that you would expect from a stock, deflating after it was gathering such momentum in an upward direction.

After the initial trading spree in the beginning of the session the stock instantly lost some of its value and went as low as $0.0471. Even as trades quieted down, however, it wasn’t able to regain its previous positions and the only increases in price were recorded in the final hours of the session.

At the end, however, it dropped from its level of above $0.050 per share and closed the day with a 11% loss, priced at $0.0485. As we mentioned earlier, the trades weren’t that significant after the first hour and PHOT closed the session with a total of 16 million shares that had switched hands, generating a trade value of $844 thousand.

PHOT‘s stock had simply reached unstable heights and with no press releases from the company to back up the hype it was only a matter of time for it to deflate. The price of the stock depends mainly on news that come from the company and it can literally go anywhere.

This is the exact reason for which we urge you to do a lot of due diligence and weigh out the risks, even when having in mind the recent popularity of medical marijuana, gained from the CNN documentary “Weed” and the news about the legal comfort that the sector received after the announcement that the federal government won’t intervene with state law regarding medical marijuana.

On the other hand Medical Marijuana, Inc. (OTCMKTS:MJNA)’s stock remains stable with lowered volumes of traded shares and almost no movements in price. The situation with Cannabis Science, Inc. (OTCMKTS:CBIS) is totally different as their charts continue to look like a rollercoaster ride.