United Treatment Centers, Inc. (OTCMKTS:UTRM) Boosts PR to Hang On to Gains
United Treatment Centers, Inc. (OTCMKTS:UTRM) is fighting tooth and nail to keep its newly acquired price positions. Back below the penny levels, UTRM for one day bucked the red trend, but on Monday continued the drop. Still, the losses were limited at around 11%, to a price of $0.0082. 
UTRM tried on Monday to prop up its stock price with a reiteration of its major PR claim, that it is the builder of a specialized online TV channel devoted to topics in legal marijuana. Unfortunately, this only helped limit the losses, as UTRM is overblowing its www.potnetwork420.com website. Investors’ forums show that the PR is taken as a positive direction, and UTRM still has the chance to go up from a temporary price bottom.
Indeed, the site looks renovated since the last visit, where it contained a couple of videos and a disordered blog. Now, news appear from time to time, as well as banner advertisements for some of the biggest movers in the marijuana market. With this, UTRM could at least fight for a piece of the general profits in the sector. And the site also serves as a mode of self-promotion, outlining the promise not only of the businesses, but of their OTC-traded stocks. Such a source of publicity may keep the ticker in the mind of investors, and prevent it from reverting to the usually low price range.
UTRM has limited resources, though among the newcoming MMJ tickers, it stacks up relatively well, with:
- $7,000 cash
- $21 400 total assets
- $780 thousand total liabilities
- $144 thousand sales
- $228 thousand net loss
At least UTRM has not dug a hole of debt for itself, though the cash may be in short supply if the company wants to unroll a more lucrative business. When it comes to setting up a marijuana company, we would expect at least the ability to pay a licensing fee, which ranges from $3,750 to $14,000.
It is even worse that UTRM has tried to compensate the lack of business success with great stock dilution, growing its stock base to above 2.5 billion shares, with a large free float of 1.3 billion shares.
UTRM trades in a similar range to US Energy Initiatives, Corp. (OTCMKTS:USEI), which entered the MMJ market through a newly created subsidiary. USEI for now holds above $0.016, but the trend is slowing down, with competing pressures. For USEI, it is also novelty and PR that is the main mover.
Conversely, Latteno Food, Corp. (OTCMKTS:LATF) is a bit more subdued, hovering above the penny levels. This older double-zero selection is seeing more selling pressure, and despite the participation in the Marijuana index, LATF remains relatively low-priced, until recently unable to break above the penny levels.
If you like the breakout opportunities of double-zero stocks, be aware that the low price does not guarantee unlimited growth, and corrections of above 50% are not unusual. While USEI has robust publicity potential, this also seems like its only tool, so adjust your timing and do not get caught in a downward spiral if enthusiasm wears out.
