United Treatment Centers Inc (OTCMKTS:UTRM) Bounces Up and Down
It’s been more than two months since United Treatment Centers Inc (OTCMKTS:UTRM) announced the acquisition of a company called RedTruckSEO Inc. The press release told us that the surviving entity will be developing an informational website dedicated to the cannabis business. The online portal was supposed to be finished by March 28 and it was supposed to be “the CNN of the marijuana industry“.
When you put in the PotNetwork420 domain name into your browser right now, you’ll see that the website is indeed up and running. You’ll also note, however, that the comparison with CNN might be a bit of a stretch. In fact, as of right now, PotNetwork420 is labeled as “Just another WordPress site” and it contains little more than a couple of videos and a few links to other marijuana-related informational websites.
Investors, however, don’t seem too bothered about this fact and UTRM is still actively traded. The ticker experienced some heavy corrections between March 25 and March 28, but it managed to log a couple of consecutive green sessions at the end of last week and recovered some of the lost ground. Friday ended with 15% in gains and a dollar volume of nearly $840 thousand. Currently, UTRM stands at $0.0084 per share which results in a market cap of around $21.4 million.
Considering the financials found in the latest annual report (published on April 1), this sort of valuation might be a bit high. Here’s what UTRM had as of December 31:
- cash: $7 thousand
- total assets: $21,400
- total liabilities: $780 thousand
- yearly revenues: $144 thousand
- yearly net loss: $228 thousand
Indeed, there are some revenues and they don’t seem too bad for a double-zero penny stock, but you should bear in mind that the sales were generated by the Element Trading Technologies LLC subsidiary which, UTRM say, is about to be spun off and turned into a separate public entity.
It’s quite clear that if UTRM is to sustain the current price levels, the PotNetwork420 website will need to register some significant revenues. This will be a tall order in its current version, but we should note that the company is working on improving it.
Mr. Chris Seminatore, UTRM‘s CEO, announced on March 31 that PotNetwork420 is far from ready. He said that some adjustments were needed which have delayed the launch. This time, he preferred not to give us any concrete deadlines, but he promised that the portal will be ready “in the very near future“.
Hopefully, Mr. Seminatore will soon be able to present us with something more than a WordPress website with a few videos embeded on it. Once he does, he’ll need to persuade the shareholders that PotNetwork420 can survive in the fiercely competitive environment and that it can actually result in a positive bottom line for UTRM.
It’s clear that Mr. Seminatore still has a lot of work to do. And while we wait to see the results of his efforts, we might as well mention the fact that a person by the same name was once at the helm of a company called Pro Tax Care. It’s safe to say that there’s no shortage of people who aren’t particularly enthusiastic about the business practices of this entity.
Treading carefully and doing a lot of due diligence is, as always, absolutely essential.
