Terra Tech Corp. (OTCMKTS:TRTC) Continues Its Rise
Yesterday brought Terra Tech Corp. (OTCMKTS:TRTC) yet another 18% rise in market value, as marijuana investors jumped at company stock, reassured by the newest marijuana legitimization developments.
TRTC was one of the first companies to jump on the marijuana train when it became clear that the hype surrounding the marijuana rush can do wonders for its stock prices. The company’s had its highs and lows since then – It has soared on publicity and crashed with the rest of the sector when faced with uncertainty and bad news. Now, more than five months after the rush began, TRTC is still traded as a pot-stock, despite the fact that it is yet to make a single dollar out of marijuana.
The company’s latest 10-Q can attest to the fact that TRTC has been able to generate some revenues. In addition, the company certainly does have more cash on hand than most of the competing marijuana penny stocks, which is reassuring. However none of this can change the fact that TRTC is currently not technically a “pot” company, but a “pot herb” producer. And while selling produce is admirable, TRTC is presently advertised as one of the more believable pot stocks on the market and valued at $109 MILLION.
Given the fact that TRTC is yet to be licensed for growing marijuana, such a high market cap is ridiculous to say the least. And, if those two red flags aren’t enough, there’s still the fact that the company currently has a net loss of nearly $5 million.
Despite the good news, investors should probably consider these facts before jumping at TRTC stock.
Another company that rose yesterday because it is traded as a pot stock, despite the fact that it does not produce marijuana, was GreenGro Technologies, Inc. (OTCMKTS:GRNH), whose stock prices rose 17.35% in that session.