United Treatment Centers, Inc. (OTCMKTS:UTRM) Tries To Recover
After wiping close to 50% of its value in just four sessions last week the stock of United Treatment Centers, Inc. (OTCMKTS:UTRM) managed to recover at least some of its lost ground yesterday. The company opened at $0.0082 and surged upwards to a close of $0.0093, a gain of 29% compared to Friday’s close.
The positive performance was facilitated by a PR statement released early in the morning that tried to explain why the anticipated launch of their PotNetwork site failed to take place. Well, tried to explain may not be the right way to describe the announcement because it didn’t contain any concrete or useful information. The company blamed recent “projects and revenue creating deals” for the delay and without mentioning any dates promised to launch the site in the very near future.
The company will need to start generating revenues because their previous business left them with rather depressing financials. According to the annual report UTRM finished 2013 with:
- $7000 cash
- $21 400 total assets
- $780 thousand total liabilities
- $144 thousand sales
- $228 thousand net loss
Coupled with the poor financial results UTRM put its shareholders through a massive amount of dilution. Having 500 million outstanding shares at the end of December 2012 just one year later that number had turned to 5.6 BILLION. The share structure was improved though when the new managed team decided to retire 3 billion of its shares leaving 2.5 billion outstanding shares. UTRM still has a couple of convertible notes that could once again cause dilution.
With their main business plan under development and shaky financials the only reason UTRM is keeping most if its price gains is the hype around the marijuana industry. But wishful thinking cannot sustain the stock forever and they will have to start showing some results. Until that happens be sure to take into account the volatile movement of the ticker and plan your investment accordingly.
After starting active trading just last Friday the stock of Cannabis-RX Inc (OTCMKTS:CANA) suffered a harsh correction yesterday. Nearly a million shares got dumped on the market causing CANA to slash 47% of its value and plummet down to $0.99. Another recent runner – Cannabusiness Group (OTCMKTS:CBGI) seems to be unable to stop its slide and lost 2.7% and dropped to $0.175 per share. Compared to the high of 45 cents reached a week ago CBGI has fallen by more than 60%.