Will Terra Tech Corp. (OTCBB:TRTC) Be Able to Expand Efficiently
Terra Tech Corp. (OTCBB:TRTC)’s stock has had it rough since the beginning of the year, when in February it plummeted and never managed to go back up. The ticker has been trading at below 10 cents since more than 2 months, but it seems that the company itself is pushing forward.
The latest press release was rather optimistic as it announced that Edible Garden, a subsidiary if TRTC, has partnered with Heartland Growers in order to be capable to cultivate the produce of the company in it’s greenhouses to avoid costs related with building their own facility.
The company mentioned that they are also looking to make similar deals with other farms throughout the country in order to minimize shipping costs and increase efficiency. This is not such a bad idea considering the small amount of cash they have on hand.
- cash: $40 thousand
- current assets: $837 thousand
- total assets: $3.6 million
- current liabilities: $3.79 million
- quarterly revenues: $773 thousand
- quarterly net loss: $14.9 thousand
The most worrying thing from the report, however, is probably the fact that the cost of goods sold is equal to 99.5% of the total revenues, which can’t be good in any case. On the positive side of things, TRTC has managed to lower its net loss by a good 53% for the nine months ended September 30, compared to the same period in 2012.
The question of whether the company will be capable to expand efficiently remains with an unknown answer, considering the financial situation. In any case, TRTC is yet to prove that it’s capable of operating at a profit, so be sure to do your due diligence and weigh out the risks if you have any thoughts of betting on their stock.
Duma Energy Corp. (OTCBB:DUMA) also had a good session yesterday in which it climbed a decent 15% under the influence of the positive news coming from the company. Vuzix Corp. (OTCBB:VUZI) didn’t do so good and slid 10% in value.
