Terra Tech Corp. (OTCMKTS:TRTC) Bounces by a Third

24TRTC_chart.pngAfter a depressing streak that pushed Terra Tech Corp. (OTCMKTS:TRTC) from well over a dollar to $0.35 per share, Tuesday’s session brought a much-needed bounce. Volume picked up again and the price climbed 32% to a close of $0.47 per share.

The sudden shift into higher gear is not attributable to a material event, filing or press release from the company, as TRTC has kept quiet for some time now. The company last pinged in with a press announcement nearly two weeks ago, combining it with its Q1 report. Here is the brief summary of the numbers TRTC reported as of March 2014:

  • $2.9 million in cash
  • $6 million in current liabilities
  • $560 thousand in quarterly revenues
  • $4.9 million in quarterly net loss

The market’s reaction to the report was not exactly ecstatic. TRTC dropped 30% after the report, despite announcing a 700% increase in revenues ‘versus comparable period 2013’. The issue here is that the over the ‘comparable period’ a year ago, the company had not yet acquired Edible Garden – the potherbs producer that is currently the chief revenue engine of the business.

Even though the technicals of penny stocks, especially those that are as volatile as pot pennies, are rarely a reliable tool, it’s plain to see that TRTC bounced off its 200-day moving average. This might explain the sudden surge that took place with no obvious external triggers.

85TRTC_logo.jpgInvestors are once again cheering as the price is climbing, with the occasional Internet poster making delusional projections about TRTC hitting five dollars per share when and if the company receives its Nevada marijuana license. This sort of overblown enthusiasm looks strange set against the underwhelming results the company last reported. TRTC is still a leafy greens producer, and one accumulating alarming losses – $4.9 million in Q1 against $6 million for all of 2013. Keeping a more level-headed outlook on things may be best until there is more clarity on the subject of TRTC actually becoming a pot stock.

Tranzbyte Corp. (OTCMKTS:ERBB), another company that suffered a lot of red sessions over the last month, finally reversed its movement, bouncing about 75% over four consecutive sessions, despite a dismal Q1 report.

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