Triton Distribution Systems, Inc. (OTCMKTS:TTDZ) Renews Steep Climb
Triton Distribution Systems, Inc. (OTCMKTS:TTDZ) regained its central place as it renewed its corporate updates. On Monday, the ticker, formerly a travel company, did what a lot of new pot stocks do: gained strongly, adding more than 57% to its price. TTDZ now hovers around $0.016, on dollar volumes of $1.43 million. 
Strangely, TTDZ did not achieve its best gains during the emailed promotion, when it would be labeled “the next marijuana monster”. Instead, TTDZ responded the best to PR outlining its merger with cannabis company Green Cures, Inc. The latest update came in on March 5th, but it helped to trigger the upward trend that is now growing with amazing momentum. Still, TTDZ remains at risk, as the ticker has easily wiped out nearly 50% of its value in the second half of February.
While a foray into the cannabis sector is promising, the site of Green Cures, Inc. reveals that the company may not be ready to take a piece of the pie. The products section is still empty, and the page is mostly a publicity landing spot. The company itself says it is still building its portfolio of products according to the new regulations.
This is worrying news, since few of the newcoming marijuana businesses show a readiness to apply for and receive a dispensary license. The process involves waiting times and phases, so it may easily eat up at least another quarter before the efforts materialize in the bottom line. As for TTDZ, this means it would hardly morph itself from a travel and logistic company into a pot shop without a glitch. True, for the state of Colorado and Denver the fee is relatively low, $5,000 to $20,000 for medical or recreational licenses.
For TTDZ, it looks as if it could afford the sum easily:
- cash: $10 thousand
- current assets: $7.5 million
- total assets: $9.1 million
- total current liabilities: $740 thousand
- revenues: $1.3 million
- net income: $340 thousand
Now, the question is whether the company will push through with the intent, or will just rely on the short-term publicity to boost the stock price.
TTDZ is one of the companies that went through a seemingly dramatic transformation. In this, it resembles Discovery Minerals Ltd. (OTCMKTS:DSCR), a double-zero ticker that is now having strong gains again. DSCR went ahead toward $0.0044, all fueled by momentum as the company presented itself as a buyer of agricultural land, supposedly for marijuana growing.
Even Gold Coast Mining Co. (OTCMKTS:GDSM) managed to take itself out of the triple-zero range, after announcing a legal marijuana subsidiary. The ticker reached $0.0013, with a great potential for fast growth, but also dangerous volatility.
If you like a newcomer with a suddenly changed business model, it is best to avoid over-investing, as those tickers show a tendency to losing a large part of the initial gains.
