United Treatment Centers Inc. (OTCMKTS:UTRM) Halves Its Market Cap

Yesterday’s session brought United Treatment Centers Inc. (OTCMKTS:UTRM) a terrifying plunge, that brought it 44.68% down as disappointed investors rushed away from the company’s stock.

It was no surprise that when the time came for UTRM to file its quarterly reports for the first quarter of 2014, all investors received was a notification that the reports will show up five days later. It was also clear that if said financials didn’t show up on time twice in a row, the ticker would go down. However a downfall this dramatic and violent shocked analysts and traders alike.

Perhaps investors got fed up with being given false hope and promises, on which marijuana companies simply can’t or won’t deliver. Maybe the company’s supporters understood that pumping out PR, which seems to be the main thing driving the sector up, could get UTRM suspended, and logically recoiled from a company that’s lost its main upward drive. Or they suddenly came to realize that all the company has really delivered to date is an unimpressive WordPress site, despite boasting that it is “The CNN of the marijuana industry”.

It is possible that holders saw this moment as the right time to cash in their shares, in case the whole marijuana sector turns sour again – an event that is not exactly unlikely at this point in time. Or it could have been a random stock fluctuation, magnified beyond all reason by the extreme volatility of the marijuana market.

Regardless of the reason, the result is clear for all to see. UTRM stock was traded for $0.0026 at the end of the May 20 session, marking a return to the bottom the ticker had escaped just a couple of days ago.

To the bitter disappointment of UTRM supporters, news on the company came out too late to halt the ticker’s descent. A video with a vague and fragmented description of the company’s business plan for the immediate future, hit the web after the session’s close, and attracted some attention from traders.

Many investors got excited over the numbers in it, despite the fact that UTRM clearly declared that it intends to generate 2 to 4 hours of original content per day. Which, needless to say, seems like an abysmally low amount of original content for an around the clock television network. The company seems to be planning to make money from advertising. But how much money can it make if it only generates two, or even four, hours worth of the material that is even marginally relevant to its audience per day?

The live stream, which appears to be the company’s pride and joy at the moment, doesn’t seem like anything to write home about, either. Nowadays, everyone, from gamers to grandmothers, appears to be busy live-streaming a variety of activities – what makes UTRM‘s stream such a big deal?

As it stands, UTRM may be in for a bumpy ride down to the bottom of the charts, unless it can deliver something way more impressive than what it has done to date.

Another marijuana company that took a heavy blow yesterday is Creative Edge Nutrition Inc. (OTCMKTS:FITX), who fell 17.86% in the span of just one market session.