Another Pump Is in Full Swing For Terra Tech Corp. (OTCBB:TRTC)
More than a month has passed without any promotions for Terra Tech Corp. (OTCBB:TRTC) but now the pump alerts have returned. This time the StockPublisher and PennyStockCrew are in the lead with their compensation of $70 000. The various lesser newsletters – ClubPennyStocks, StockHideout, PennyStockProfile to name a few, bagged sums ranging from $10 000 to $15000. Most of them were hired for a day or two of promotional services so if others don’t get involved it should be a short lived affair.
Unlike the other companies that joined the medical marijuana sector earlier this year, TRTC at least seem to have a legitimate business plan. They have been quite active in pursuing their goals and the latest couple of press releases have all been quite significant. The acquisition of Edible Gardens was completed successfully and a distribution contract with GroRite Garden Centers was signed last week. Under the terms of the contract GroRite will purhcase the majority of their plants for sale form TRTC‘s subsidiary. And most importantly the company has secured a common stock purchase agreement for up to $5 million so for now they have secured the funding they required.
On paper everything looks really promising but all that matters is their financial situation. They finished 2012 with the following results:
- $16 thousand cash
- $352 thousand total current assets
- $846 thousand total current liabilities
- $552 thousand revenue
- $5.8 million net loss
The massive net loss should raise some concerns but these numbers aren’t representative of the company’s current situation. A quarterly report should be filed any time now and it will show how the recent slew of activity has affected their financial indicators.
As you might expect financing such operations hasn’t been cheap. On May 9, TRTC filed a S-1 form for the registration of 44 million shares and if the company expects to continue with its expansive goals further dilution should be anticipated. From an investor standpoint the ticker hasn’t been doing so well. Since the pump they underwent back in February and the following crash it has been steadily sliding downwards. Yesterday it went further down by another 10% to close at $0.141 with a substantial traded volume of more than 2 million shares.
In March PennyStockCrew touted another company – Oryon Technologies, Inc. (OTCMKTS:ORYN). The ticker plummeted down when the emails stopped and it is still unable to recover. At the same time PSC collected another $100 000 for a job well done and moved on to find new picks leaving many investors trying to recover from their losses.
