Terra Tech Corp. (OTCMKTS:TRTC) Drops In Double Digits

Less than two weeks ago Terra Tech Corp. (OTCMKTS:TRTC) shareholders were cheering as the company’s share price climbed to amazing heights. TRTC soared from $0.50 to $1.40 per share in a mere five sessions and traders were euphoric. Then reality started kicking in and the stock went on a devastating red streak.

In a week and a half TRTC managed to lose nearly 30% of its market value as the hype started to subside, media appearances ceased and the reality of the company’s situation started sinking in. TRTC managed its original climb through a streak of media exposure and a renewal of talk about growing marijuana in the company’s hydroponic facilities, currently used for producing leafy greens such as basil and lettuce.

An additional factor that very likely helped TRTC quicken its descent down the charts is the fact that three company directors filed three Form 4-s, informing the public that they offloaded a cumulative total of 300,000 common shares, managing to squeeze the sales in just before the ticker dropped under $1.00 per share. Insider selling never improved investor confidence for any company. In this particular case the selling happened right after the stock had climbed explosively and was dropping fast. It’s hard to imagine how the company expects investors to believe in its success when insiders are unloading in such large volumes.

The company came out with a press release a couple of hours ago, informing that a ‘research and industrial extraction’ facility is in development. TRTC intends to use it to extract CBD or cannabidiol, with an extractor unit already purchased. The project is aimed at helping the joint initiative of TRTC and Inergetics aiming to produce a CBD nutritional supplement.

Whether the news announcement will help push the price back up or investor confidence has been shaken too badly remains to be seen. So far it seems the market is reacting to the news positively, with TRTC trading 5% up shortly after the opening bell.