After reaching an intraday high above $0.06 and closing at $0.55 on Monday the stock of GrowLife Inc. (OTCBB:PHOT) has been rapidly sliding downwards currently sitting at $0.042 in early trading today. Despite its volatile performance the company has consistently placed amongst the top traded stocks on the market with an average volume of traded shares around 8 million.
On Wednesday they managed to close in the green after an interview with the CEO Mr. Sterling Scott was published on SeekingAlpha. The enthusiasm was short-lived though and on the next day the ticker continued on its path downwards.
Growlife is among the more promising companies operating in the newly established marijuana industry. They are a SEC compliant filer and have for the past year stayed away from any major pump campaigns. For now their fundamentals don’t inspire much confidence which may explain the frivolous movement of their stock price.
They are generating revenues but they are not enough to offset the net loss of $1.6 million for the last quarter. The negative working capital amounts to $1 million while the accumulate deficit is closing in on $6 million. Still PHOT
is moving along with their business plan and this Monday announced the opening of their 7th hydroponics store in Santa Rosa, California.
A major catalyst is going to be the next quarterly report. According to the CEO it is going to reflect more accurately the position of the company and its recent acquisitions. By year-end they are projecting sales to bring around $5.45 million but there is still quite a lot of time till then. Investing in PHOT
requires careful consideration and setting up appropriate time horizons for your investment.
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