United Treatment Centers, Inc. (OTCMKTS:UTRM) Continues Climb as Newly-Minted Pot Stock

United Treatment Centers, Inc. (OTCMKTS:UTRM) is yet another rock-bottom penny stock that is trying to launch itself into the new year, at least for a short-term run, or even a longer-lasting interest in its stock, and better volumes. UTRM had another successful day of growth last Friday, adding more than 43% to a level of $0.0033, still quite low, though phenomenal given that UTRM was at a minimal triple-zero position until a few days ago. Dollar volumes reached $2.19 million.

UTRM grew by 600% in the past week, as the record volumes were reached on February 5th. What is strange is that the company is not mentioned in any new promotional campaign, but there are enough key business updates to keep the stock heated up.

The press release of February 5th is an announcement of a reverse buyout, in which UTRM will become the vehicle for RedTrucksSEO, Inc. But it is the magic words in the PR message that led to the stock explosion: the company just acquired happened to be interested in the medical marijuana sector. So it is no wonder that UTRM will join the list of sub-penny stocks that arose to visibility just because they found a way to style themselves as cannabis companies.

On the positive side, UTRM promised to retire three billion shares to its treasury- still leaving the company with more than two billion shares outstanding. The known share float is about 1.3 billion shares, with enough in the sidelines. The current market cap of UTRM is above $18 million, a phenomenal sum for a company just arriving on the scene with the vague promise of offering IT services targeted to the cannabis sector.

Unfortunately, UTRM does not reveal a SEC number and is an unaudited pink sheet company. The limited information shows that UTRM holds:

• $743 cash

• $57 thousand current assets

• $734 thousand current liabilities

Since UTRM spun off one of its companies, one can only hope that the new company that will in fact use the ticker, has enough reserves to continue for a while. But with or without earnings, UTRM holds enough red flags, such as a dubious office address in a residential area, to underline the fact that the shares are an extreme risk. Even the price range means that without logic or reason, UTRM may fall to deep corrections. 

Current movers at the extremely low level include the longer-term presence of Latteno Food Corp. (OTCMKTS:LATF), the producer of cannabis edibles. LATF had a successful month, though with its setbacks, it still cannot vault the penny level. 

Intelligent Living, Inc. (OTCMKTS:ILIV) managed to hang onto the $0.0047 levels on Friday, awaiting the new opening for a direction. ILIV also incorporated the medical cannabis opportunity into its previous business of general health and wellness. 

In the case of UTRM, it is best to stay away or only invest affordable sums, as you will be betting on a company with a shaky record, both in terms of real business and of trading volatility.