Growblox Sciences Inc. (OTCMKTS:GBLX) In The Red Again
Last Tuesday, Growblox Sciences Inc. (OTCMKTS:GBLX) managed to bounce on the news that it had acquired a permit for the cultivation of marijuana from the Clark County Administration. The announcement managed to convince many pot-stock enthusiasts that the company had finally managed to break its descent for good, but it soon became obvious that this state of developments was not going to last – GBLX lost 10% of its market value on Friday alone.
Although it was unpleasant to GBLX and Terra Tech Corp. (OTCMKTS:TRTC) stock enthusiasts, this turn of events was anything but unexpected, in both cases. Stock prices of companies in the marijuana sector have the tendency to jump on positive news. However, these jumps are largely hype-based – and once the news grows cold, the hype around the company dissipates and the ticker is soon headed back down to the bottom of the charts.
The exact same thing happened to both of these companies, almost simultaneously. Looking at the timing of recent developments, this fall seemed almost inevitable, especially since the news that both companies rose on news that were not really all that significant.
As previously discussed, getting a cultivation license is certainly a necessary step forward and a news-worthy development for a fledgeling marijuana company, however GBLX, just like TRTC, is currently halfway there. Further, the hearings for the state license will not be held for another month or two, so the earliest real development on the this front will be in a while. All GBLX can really give its investors for now are hopes that it will get the much anticipated final state sanction, and somehow proceed from that point on.
Meanwhile, the red flags GBLX has accumulated in the recent past still haunt the company. Paid pumps, toxic funding issues, unimpressive latest financial filings, dubious management, inconsistencies between announcements and filings, even the fact that the location of the company’s office is still unknown – all of these are just a fraction of the known issues contained in GBLX‘s most recent press releases and financial reports.
Investors are advised to keep those in mind when making up their mind about GBLX stock.