Growlife Inc (OTC:PHOT) and Stock Guru are Optimistic Once Again

PHOT.pngWhenever we see a company that is repeatedly promoted over a short period of time, we can’t stop thinking that there are some seriously desperate people standing behind all the hype. The same goes for when we see companies that can’t stop issuing so-called news that are supposed to make shareholders really optimistic about the future, yet, in fact, have nothing to do with the company. This is pretty much the case with Growlife Inc (OTC:PHOT).

Back in November PHOT was featured in quite a large promotional campaign that managed to raise the price of the shares. What is even more, they are still managing to hold on to it. How do they do it? Many ways, but the most successful one seems to be constantly repeating how good an impact the new marijuana laws in some states will have in the future. Yesterday’s news that came out of PHOT‘s HQ is pretty much along the same lines. Once again we see predicted growth in the market, due to the new laws, PHOT themselves claiming that they have realized some massive sales and expectancy to register many more in the future. Sure enough, Stock Guru didn’t take long to spread the word around and the email arrived minutes later.

The thing is, we have already heard all these things and we were hoping to hear something new, not the same old vaguely relevant forward-looking statements. What do we mean? It would have been nice to see a new report filed in with SEC. After all in yesterday’s press-release, they were referred to as a completely transparent company that is extremely regular when it comes to financials. Sadly, the latest filing is still the one that was uploaded on November 15 and it deals with the period ended September 30.

PHOT_logo.pngThis is what we had to work with and if we have to be honest it’s not too encouraging. Indeed, Q3 of 2012 was the first quarter since inception where they registered a profit, but still it’s not enough to convince us that the trend will continue. We have published the figures before, but to save you the trouble of looking through the articles, here they are once again:

  • cash: $164 thousand
  • total liabilities: $1.6 million
  • revenue: $475 thousand
  • operating loss: $374 thousand
  • net loss for the period between January and September 2012: $849 thousand

Indeed the Q3 financial report does look better than the ones before it, and it’s no secret that the marijuana law changes will help in one way or another. Will they have enough of an impact though? Before we can get some more up-to-date information, we are reluctant to say yes. Even more so considering the paid promotions that continue to be sent out every now and then.

0FRCN.pngWhy is that? We have seen far too many companies getting the same old treatment: they get promoted, price goes up, hype stops, price crashes down. Firemans Contractors Inc. (PINK:FRCN)’s example is as clear as it gets. Ironically enough, it was promoted by none other than Stock Guru.

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