Triton Distribution Systems, Inc. (OTCMKTS:TTDZ) Recovers Thanks to Optimistic Buyers

For now, Triton Distribution Systems, Inc. (OTCMKTS:TTDZ) is out of the danger zone, with two days of gains that led it above two cents. On Wednesday, TTDZ added a slim 3% on the day, as investors loaded up another 50 million shares, and the price reached $0.022, on dollar volumes above $1.02 million. 5TTDZ0522.png

So far, we cannot estimate whether TTDZ is rising based on a series of corporate updates, or due to the fact that the company was considered oversold. The positive thing is that TTDZ showed robustness, and did not easily slide below the penny levels, as many other fast-rising marijuana companies have done. Also, TTDZ still awaits its name change to Green Cures, Inc., which may boost interest in the days leading up to the event. 5TTDZ0522.png

The Marijuana index still does not show signs of recovery or general enthusiasm for the whole sector, though on Wednesday more companies were in the green. When it comes to stocks outside the index, it is more a matter of individual red flags about each company. Speaking of details, the financials of TTDZ are still somehow worrying:

  • Zero cash and assets
  • $370,892 “Goodwill”

While TTDZ is admired for having no debt in its foray as a producer of medical cannabis products, the above results pose a question of how the company would be able to cover day-to-day business expenses, and the ambitious investments into a large product range.

Investors’ forums still see TTDZ as a company that means business, and the CEO Robert Calkin is seen as an experienced manager with long-term knowledge of the potential of cannabis. With all this, TTDZ looks like a complete paradox, with an OTC warning for limited financial information.

When it comes to new arrivals in the MMJ sector, it is hard to tell which ones would survive for a bit longer, an which ones would fizzle out in the first days. So far, TTDZ is one of the tickers that has been holding on, though it wiped out quite a bit of value when it slid in the past months.

In this, TTDZ resembles the movement of Latteno Food Corp. (OTCMKTS:LATF), which despite its low price remained a regular choice for investors. LATF saw some risk to return to its lows at triple-zero prices, but so far, the ticker hangs on at $0.004, and has the potential for a rather large daily run. The biggest problem for LATF was the inability to keep prices above one penny, as investors always took profits and dragged down the price. Once LATF was outside the Marijuana index, trading volumes fell even more and led to a slide in the price.

US Energy Initiatives, Corp. (OTCMKTS:USEI) is handling the bad moods relatively well, hanging in the middle when it comes to a price range, at $0.007, though this ticker also shows significant volatility. USEI almost touched the two-cent levels, but could not remain there.

If you want to add to your marijuana stock holdings, keep in mind that the low price means the potential for rather sharp movements, so plan to be able to afford the losses, as well as enjoy the gains.

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