Dramatic Rise for GreenGro Technologies, Inc. (PINK:GRNH), What’s Next?

The shares of GreenGro Technologies, Inc. (PINK:GRNH) have gone crazy ever since the company announced the launch of its newly-developed online store. The stock got even featured in a couple of trade newsletters promising a spectacular chart run for GRNH shares. How justified do all these forecasts seem, though?

Closing trade at $0.12 per share, GRNH almost doubled in value yesterday, building up on the 45% surge that occurred last Friday. More than 9.75 million shares of common GRNH stock changed hands, the third highest GRNH volume for the last six months.

Even though the latest official news came up on Jan. 29, it took GRNH stock a couple of days to really get going on the charts. In fact, it is the last two working days that the stock went through the roof when a couple of advertising newsletters put GRNH shares on the watchlist. As a result, GRNH did ramp up its market value. However, does the company have what it takes to make its momentary growth last longer than a twinkling of an eye?

The company closed Q3 of 2012 with $1,838 in cash and a working capital deficit in excess of 150 thousand. Its only long-term assets are comprised of goodwill evaluated at $250 thousand. Its aggregate loss to date exceeds $40 million and counting. These figures will hardly win our confidence in the stock, let alone investors’ trust. In this respect, the company’s plans to raise as much as $750 thousand using a mix of debt and equity financing seem rather ambitious.

Nevertheless, the online store has just opened, which is why it is way too early to make any estimates regarding the possible benefits it could bring to GRNH‘s shareholders in the foreseeable future. Maybe this effort will bring rewarding results or end up being another financial bust. For the time being, we would rather wait and see how this already overbought stock (RSI’s current value oes beyond the 85 level) will behave in the next few days.