Terra Tech Corp (OTCMKTS:TRTC) Sobers Up
After an interesting micro-run fueled by the announcement of positive news, Terra Tech Corp (OTCMKTS:TRTC) dropped in double digits, wiping the progress made since the Sep 3 news release in full. The company’s stock stopped at $0.131 per share on Friday, 10% in the red.
Investors were getting their underpants in a bunch over the announcement that TRTC secured two new dispensary permits in unincorporated Clark County, Nevada. The news made TRTC trade in volumes it had not enjoyed in over a month and was generally accepted with a tidal wave of cheering on discussion boards.
Even as we covered the initial price push, we mentioned that this is probably not the best thing to be excited about, at this point in time. TRTC is still facing the challenging final steps before it opens the dispensary locations it secured permits for back in the summer of 2014. Even though the company delayed the opening of its first dispensary from “summer 2015” back into “October 2015”, the opening should now be just weeks away.
As the quick Friday retreat suggests, it may be safer to wait for performance results and for TRTC to first deliver on its 2014 permits, turning them into active, revenue generating facilities before excitement is allowed to influence investment decisions.
Despite the launch of TRTC‘s IVXX brand in early 2015 and the increasing number of dispensaries where its rather pricey products are sold, the “cannabis division” of TRTC made just under half a million in revenues for the first half of 2015. Meanwhile, the company logged a net loss of $4.9 million for the same period.
CEO Derek Peterson previously mentioned in interviews that his privately owned Blum dispensary was generating revenue per square foot that was right up there with the figures generated by Apple retail stores. If a similar monetary performance can be achieved in TRTC‘s upcoming locations, and more importantly, if those locations open on time and are not further delayed, TRTC may see better days in 2016.