Terra Tech Corp. (OTCMKTS:TRTC) Keeps Surging Despite Volatility

Yesterday the stock price of Terra Tech Corp. (OTCMKTS:TRTC) parked itself at a new high by the closing bell. The ticker went through some major swings in both directions, but ultimately ended the session at $1.40 per share, or another 18% up.

TRTC is soaring ever higher, logging a fifth green session in a row. It may already be getting a little dangerously high as yesterday volatility was rampant. After opening at $1.32 with a significant gap up, the ticker bounced as high as $1.42 intra-day, but also dipped below a dollar per share. An intra-day swing amounting to about 35% of the closing price could be a sign that momentum is waning.

TRTC CEO Mr. Peterson’s appearance on Fox Business didn’t quite manage to command as big a green run as those of the previous sessions, even though it got many investors excited. Additionally, an article appearing on Seeking Alpha cast TRTC in a very favorable light, more or less suggesting that it could be a good stock to go long in. The article in question is practically devoid of any merits as its disclaimer states the author has a long position in TRTC.

TRTC is a company that is still making money off its edible greens produce and despite having an installed base of hydroponic equipment in several locations across the U.S., it’s not growing marijuana in those and it’s not too clear when it thinks it could start doing that. While it’s true that the company has secured access to lines of capital, those involve conditions that we have examined multiple times in the past, which have the potential to hurt retail shareholders through convertible notes that convert at significant discounts from the current price of $1.40 per share, or as low as $0.30 per share.

Has enough changed fundamentally from the time TRTC was trading at under $0.10, just three months ago, to warrant the company’s valuation to shoot to over $170 million? Traders are best left answering this one on their own, doing their own due diligence on the company and going through its official public filings.

Pot tickers propelled by the continuing frenzy in this sector of the OTC dominated the volume charts yesterday. Growlife, Inc. (OTCBB:PHOT) outperformed TRTC in terms of total dollar volume but slid 8% down. Medical Marijuana, Inc. (OTCMKTS:MJNA) also closed down, stopping 5% down at the bell.