Growlife Inc (OTCBB:PHOT) Climbs to Unstable Heights
Since the start of last week the stock of Growlife Inc. (OTCBB:PHOT) has been heading in only one direction – up. The momentum behind its climb has been steadily building both in share price and traded volume culminating in yesterday’s amazing session. The ticker added another 20% to its value and closed at $0.055 but the intraday high went as far as $0.061. Even more impressive was the amount of traded shares with more than 40 million shares changing hands in just one day.
For most of the year PHOT has been staying away from any major pump campaigns. The only newsletter that has been touting them is SpeculatingStocks who disclose compensation of $1000. The reason they don’t need any help in creating hype around their stock lies in the fact that they operate in the emerging marijuana industry which even by itself is guaranteed to attract the attention of the market.
Even more so during the past month. First Dr. Sanjay Gupta announced his new positive stance on the medical benefits of marijuana and released his documentary called “Weed” which revitalized the whole sector. Then on August 29 the US Department of Justice said that they will not interfere with states who have decided to legalize the plant.
As a result PHOT have enjoyed increased revenues from their online hydroponics store and the largest dollar volume sales day in their history. And yesterday came the news that they will be opening a new store in Santa Rosa, California making in the 7th retail location for the company. They will certainly need the influx of fresh funds because at the end of the last quarter they had:
- $160 thousand cash
- $1.5 million total current assets
- $2.6 million total current liabilities
- $872 thousand revenues
- $1.6 million net loss
The ongoing dilution of their common stock thanks to the numerous convertible notes, some of which have a conversion price as low as $0.007, should also be kept in mind when deciding whether to invest in the company or not. Despite opening with a gap up in early trading today the ticker started correcting and is currently 10% down trading for $0.049 per share.
Yesterday the stock of Alkaline Water Co., Inc. (OTCBB:WTER) continued its rapid descent and fell by 33% to arrive at $0.47. The company was touted by a pump with a reported budget of $3 million. And in a unexpected turn of events the stock of PacWest Equities, Inc. (OTCMKTS:PWEI) got suspended by the SEC today, just three days after Awesome Penny Stocks announced that the company was their newest pick.