Growlife Inc. (OTCBB:PHOT) Starts Climbing The Charts Again
Growlife Inc. (OTCBB:PHOT) slipped twice since the beginning of February. The end of Tuesday’s session found the company’s stock traded for as low as $0.315, but share price managed to pick up during yesterday’s session, and the company closed at $0.349.
These days PHOT seems to be displaying the pattern that became obvious with most other companies in of the marijuana sector lately. A look at the company’s charts and their press releases reveals that the ticker’s upward surges always match the announcements’ dates.
As was mentioned in previous articles on the subject, in the present volatile market any news related to a company more often than not triggers a frenzy of buying. This burst of activity in turn pushes the company’s ticker up the charts dramatically. The ascent doesn’t seem to last longer than it takes for the news to spread, at which point the ticker would inevitably head back down again.
Companies in the branch, such as Medical Marijuana Inc. (OTCMKTS:MJNA), HEMP, INC.(OTCMKTS:HEMP) and Cannabis Science Inc(OTCMKTS:CBIS), have all exploited this phenomenon, assisting their market value through an unending stream of publications.
This tactic has proven unreliable and may appear pointless in the long run, but it seems to do a good enough job of promoting the stock of many of the major marijuana players. The fact that share prices start crashing as soon as the news grows cold doesn’t seem to bother companies or their investors much.
Yesterday PHOT rose 11.05% on nothing but commentary from a stock market reviewer. Traders could potentially also be rather excited about PHOT‘s joint project with FITX to construct a marijuana production facility in Lakeshore, Canada. However, at this point there seems to be too little detailed information about the project.
Investors should keep in mind that a company’s ability to generate optimistic statements doesn’t necessarily equal its actual financial or commercial success. Just as the FINRA advises, traders should do extensive, in-depth due diligence and spend some time looking for potential red flags before committing to high risk stocks.