Triton Distribution Systems, Inc. (OTCMKTS:TTDZ) Threatens to Slide Below One Penny

Triton Distribution Systems, Inc. (OTCMKTS:TTDZ) is headed back to the sub-penny positions, at least if the current negative trend keeps on for a while. On Friday, despite the corporate update, the ticker slid down more than 17% to $0.017, as selling reached above $600,000. TTDZ has inspired robust buying after such slides, but the general trend among marijuana stocks remains pessimistic.

On Friday, the recently transformed marijuana company offered several corporate updates, the leading one being a new financial report listed directly to the OTC landing page. TTDZ mentions that it could not consolidate the financial data for 2013, which were lost under the company’s old management. Now, TTDZ in its identity as GreenCures, Inc. plans to offer more timely information.

But even the “timely” filing is not very inspiring, containing:

• Zero cash and assets

• $370,892 “Goodwill”

Added to this is the still incomplete site of Green Cures, as well as no clear idea when the company would start selling its medical cannabis products. So currently, the only thing attractive about the company remains the short-term bargain price. So it is rather comic that TTDZ has announced plans to start a video publicity campaign to promote the Green Magic brand in the second or third quarter of 2014. The aim of Green Cures is to make its own cannabis oil brand, a treatment modality that has been in fashion in the legalized cannabis business.

For now, TTDZ also set the stage for another press release surrounding the Green Cures business. If nothing else, this at least keeps trading somehow active, by providing a source of enthusiasm. Still, most of the information in the recent updates remains tangential, and serves more as a red flag, revealing that for now, TTDZ runs more on hype than on its inherent qualities.

In the past, TTDZ had a wild run and crash even before it announced the affiliation with the MMJ industry. Then, TTDZ played with the idea of merging with a logistics company. But the longer upward run arrived just after the company announced its plans to sell medical cannabis.

Unfortunately, this kind of promotion is under close scrutiny from the SEC, which issues almost daily warnings about the qualities of marijuana companies. The latest is an alert concerning marijuana companies, which are targeted for their limited filings, as well as the aggressive promotion and potential unauthorized stock transactions.

In the case of TTDZ, the downward pressure may also come from a surplus of shares. TTDZ has more than 1.9 billion shares outstanding, as well as 1.6 billion shares in free float, enough to pull down the trend.

Underpriced marijuana tickers hide many risks, as exemplified by Latteno Food, Corp. (OTCMKTS:LATF). This company was also expected to make a run into the penny levels, but it was pulled down on profit-taking. Now, after three good days, LATF was pulled downward again, to $0.004 after shedding more than 14%.

If you hope for a rebounce when TTDZ posts a new PR message, keep in mind that this may cause disproportionate price volatility, and adjust the size of the investment.