The latest 10Q from Terra Tech Corp (OTCMKTS:TRTC) needs to be read by all investors and for those that are not willing to spend one hour to see what your company has done with your investment trust, you may regret the decision. For those that expect TRTC to go to a buck a share because they opened a few dispensaries, well , think again. TRTC is not worthy of its current market cap, so putting it at a billion dollar market cap is a pipe dream. In fact, that pipe better be stuffed with some of your dispensary favorites so that the pain will be eased when reality sets in.
I rarely write negative pieces on a stock. However, when I received a few questions about my thoughts on TRTC today, I felt it was the opportunity to be brutally honest.
I was warm on TRTC last month and I provided the benefit of the doubt to management, expecting a legitimate report to be filed for the third quarter. What investors got, however, was more hype, garbage and excuses. Oh, yeah, and a couple hundred million more shares added to the o/s count. As for that huge spike in shareholder equity, well, $32 million of it was gained and recorded from a “goodwill” accounting entry. C’mon,man.
For investors looking to find a niche play in the marijuana sector, look to the companies that are going to feed the frenzy. Equipment manufacturers, paraphernalia makers and ancillary items needed by users to enjoy their lifestyle will be the winners in the early growth stages of the industry.
Saving 80 cents on a TRTC owned “IVXX” branded package won’t get TRTC any closer to profitability than what we have just witnessed. And that was a conference call pat on the back.
TRTC threw the best they could at investors in November, and all they had to show for it was a huge increase in share count and almost triple the loss.
If I need to more blunt, I will be. TRTC should be dismantled, the insiders should be stripped of their shares and the class actions should soon feast on their carcass. Read the filings and read the staged Q&A from November. After you do that, decide whether or not hanging around the TRTC joint is a good decision for your financial future.
About the Author:
Kenny Soulstring is an entrepreneurial visionary with a thirty year history developing and operating small to mid sized businesses. His experience in building a brand led to his interest in investing in small and emerging companies, and for the prior twenty years, his investments allow him to take part in new ventures without undertaking all of the legwork. Focused on finding compelling opportunities in the small cap sector, Soulstring enjoys the art of the build, watching a company develop from concept to maturity. His frequent contact with company management allows him to offer timely and relevant information, working to keep news fresh with a spicy commentary to match. Soulstring was raised in Miami Beach, Florida and plans to retire there when his hair turns fully gray.
KS1@cnafinance.com
Note: This article is written by Kenny Soulstring and was originally published at CNA Finance.
