For those that argue that the warrants will provide cash. Well, I’m sure that they will. However, when those shrewd insiders buy the shares for 12-13 cents and eagerly sell them into a market at anything higher than that level, their payday is sweet, but I guarantee you that it will be at the expense of the retail holder.
And who gets rich off of these shares, despite the share price? Well, TRTC insiders do, and, these insiders have had good practice over the previous twelve months, with 30 sell orders without a single insider purchase. I wonder if the husband and wife team of Peterson and Almeister, the CEO and Secretary-Treasurer, respectively, file their tax returns jointly and show their holdings of over 100 million shares. Or, perhaps Kaufman and Ibrahamim file together, another husband and wife team of TRTC insiders who own just under 200 million shares. It’s ironic that these insiders don’t share last names. Are they trying to hide something? And, what did they actually do to gain control of almost 40% of the company?
So, remember when Terra Tech Corp (OTCMKTS:TRTC) had 350 million shares authorized? Well, even a second grade student studying to be a rocket scientist can figure out that this small group of insiders already owned most of the available float, when accounting for the convertible shares that they owned. And, the scraps were left for enthusiastic retail investors who were oblivious to the massive level of dilution that was pending.
But Soulstring, They Had To Grow
I’ll grant you the one wish. I’ll let you believe that all the shares were properly valued and wisely spent. Yes, I’ll grant you the wish and even allow you to believe it, but, in actuality, many retail investors may get toasted very soon.
Okay, so the Vandevredes and the Blum cartel got hefty share distributions, but at least they had a viable business to sell in order for them to earn that stake. But, beyond those two, most of the insiders probably never worked beyond an eight hour day to earn those multi million share holdings.
And Amy Almeister…well, if investors take her share selling lead, the dumps would be so heavy that even a twelve ton truck couldn’t hold the paper transferred into fresh retail hands. Oh, Derek is selling too. If you ask them why they sell, you will most likely get the “tax reasons” response.
But, shareholders did not get to ask those questions during the most recent call. Instead of legitimate shareholder questions, which are typically accommodated by Peterson, the call on November 9th had staged questions and responses. Perhaps the CEO is smarter than many believe. Even he knows when to hide. And, its a good thing that he did hide.
Hiding From The Truth
If Peterson would have been willing to take questions, he could have explained how a record quarter led to even steeper losses. He could have explained how a seed to sales distribution program provided a 1% difference in gross margin. He could have explained how the Blum outlets only booked a total of $7 million dollars for the quarter when daily sales estimates were ranging in the $65K dollar per day level, per location.
He also hid from the fact that the company went from being virtually debt free to having $2 million in debt at the end of the third quarter. Investors would be safe to wager that the $2 million in debt is tied to some convertible notes that can return 20X that amount instead of the going rate for a junk company of 17% annual interest. But, why go mainstream when insiders can enrich themselves.
With all of the tailwinds finally at the back of TRTC and with the dispensaries finally contributing to the revenue stream, TRTC posted a net loss of $5.2 million dollars for the quarter, compared to a net loss of $2 million dollars in the comparable quarter. Thus, even with every positive thing that could have happened to bring TRTC into the black having happened, those accomplishments did absolutely nothing. Well, it did do something, it helped to increase the net loss by over 180% from a quarter that did not include dispensary sales.
Here’s The Final Bong Hit
TRTC has been nothing but a huge disappointment to retail shareholders since this company started. The red flags were all over the place, especially in relation to the CEO and his wife. But that is just the tip of the iceberg. Investors can do their own Google search on those two.
Insiders are dumping shares by the millions and are most likely laughing all the way to the bank. They have bloated this company to a virtual billion share entity and the next action will be the reverse split. Oh, you don’t think so? Well, don’t hang around to learn the hard way. A 10K share holding will likely become a 1K share holding within twelve months. From there, expect a second r/s and watch your shares become 100 shares with a 99.9% loss.
If TRTC can’t make it without direct competition, they are going to be hard pressed to survive when it does arrive. And believe me, competition is on the way. Big tobacco will become Big Kush before you know it and little guys like TRTC won’t get bought out, they will be snuffed out.
