United Treatment Centers, Inc. (OTCMKTS:UTRM) Grows on Stock Retirement News
United Treatment Centers, Inc. (OTCMKTS:UTRM) had one of its more successful days of buying. The newly active marijuana stock grew by 36% to $0.0034, on buying volumes above $213,000. With that activity and price range, UTRM is a secondary choice for exposure to the cannabis sector, yet the activity may be enough to attract new buyers.
UTRM contains enough to make buyers beware, beginning with its extremely low price range that promises significant volatility. The first sign are, not unusually, the financial data:
- $743 cash
- $57 thousand current assets
- $734 thousand current liabilities
Still, there is a silver lining, in that UTRM completed the retirement of three billion shares, and tightened up a bit its stock structure. This may be taken as a positive development, and as a chance to create enough squeeze for a more significant price growth. Despite the strong momentum, UTRM escapes the attention of pumpers, as other pot stocks manage to offer much more significant feats.
Also, UTRM is rather sluggish with its corporate updates, which stands behind the periods of lower volumes. The only hook that may bring in interest is the upcoming launch of a corporate website, and perhaps the further development of the promised cannabis media channel. The last time we checked, the web TV site contained only a single video and several general posts on marijuana, which is by no means significant or exclusive content.
Also, UTRM is the seventh name change of this pink sheet company, always a worrying sign that the ticker was a vehicle for other businesses and was abused for promotions. Even after several reverse splits, UTRM remains with more than 2.5 billion shares outstanding, so despite the relatively low market cap of $8 million, this poses a significant barrier to stock growth. The free float is 1.3 billion shares, enough to go around, if investors remain interested.
Another red flag for UTRM is its business address, given in a Los Angeles residential and retail area. We still don’t know if the UTRM office has replaced the SPA and nail salon, or the psychic readings center.
UTRM is way behind the underpriced star of the cannabis market, Latteno Food Corp. (OTCMKTS:LATF). This cannabis edibles business still produces no actual edibles, but the promise for the future keeps activity high. Now, LATF is again above the penny levels, though that price range has traditionally caused selling for profit-taking.
UTRM is still seen as potentially growing to the penny levels, just like many other cannabis tickers have done with the right mix of news and momentum. One of those was Triton Distribution Systems, Inc. (OTCMKTS:TTDZ), which even lifted itself out from triple-zero positions and sustained the trend with timely communications on its Green Cures, Inc. venture. TTDZ currently stands around $0.0123.
If you like UTRM for its growth potential, keep in mind that the last day was extraordinary, and that the growth is certainly a reaction to PR activity. Otherwise, UTRM does not invite in enough trading, so be sure to avoid being stuck with illiquid stocks.