Triton Distribution Systems, Inc. (OTCMKTS:TTDZ) Completes a Dazzling Week

Triton Distribution Systems, Inc. (OTCMKTS:TTDZ) continues to raise interest with its relatively long survival compared to other newcoming marijuana stocks. For two months already, TTDZ is a patient gainer that managed to move into the penny range. TTDZ added nearly 11% on Friday to a price of $0.0396, on buying volumes within the usual range, at $3.14 million. Since this ticker managed to gain trust after the initial volatile days, it is necessary to remind the hidden risks which may topple it from the current high share price.

Now, TTDZ will have more good days ahead of its name and ticker change to Green Cures, Inc. Last week, the two companies announced a change of directors ahead of the merger, but since then, TTDZ has mostly moved on general positive momentum. According to the company’s PR, the new CEO will be Mr. Robert Calkin, and there will be an expasion to South and Central America with Dr. Wendy Osegueda as a regional Chief of operations.

Unfortunately, Green Cures has little to do with an already existing California dispensary, “Green Cure”. And we have yet another red flag- that Mr. David Osegueda is taking an active part in the venture, on the side of Green Cures, Inc. Mr. Osegueda is currently marked as the director of Mafia Apparel, Inc.

And that is not all for TTDZ. Apparently, the company also wants to attract $3 million in financing through a private placement with an offshore investor. According to the plan, 740 million shares would be sold at $0.00405 per share. In addition, TTDZ for now decided to decrease bloated share count by 300 million shares, but ahead of the merger will supply itself with 2.5 billion authorized shares.

That could easily create a problem, since even promising companies with a large share base are having troubles with the stock price, which becomes depressed due to the large supply of stocks.

There is almost no indicator whether a sub-penny stock would gain to a few cents, even after giving solid indications that it is a marijuana company. Some, like IMD Companies, Inc. (OTCMKTS:ICBU) managed to peak as high as 10 cents.

But some remain stuck in the lower range, with plenty of room for a seemingly significant run. Rapid Fire Marketing, Inc. (OTCMKTS:RFMK) in fact started from triple-zero positions, but moved on to $0.0013 quickly, before taking up the slower track, to reach its current $0.0044.

For now, TTDZ is not boosted further by promoters, and the biggest contribution to the climbing trend is the timely PR. Without it, TTDZ has shown that it falls into days of significant volatility. Also keep in mind that trading volumes are significantly lower in the past days, compared to the initial days of optimistic loading of shares. If you like the general trend, keep in mind that marijuana stocks often reverse their direction. Avoid over-investing, and don’t get caught in a stock of dubious true value once the enthusiasm wears out.