Terra Tech Corp (OTCMKTS:TRTC) closed up 9% to $.22 to end the week. TRTC has been chugging upward since late October. But those that follow the stock closely are aware though that TRTC is in desperate need of a catalyst to restore some positive traction. Are the recent moves enough?
TRTC obviously wants to take advantage if the cannabis green rush but the stock has not really seen enough volume recently. The company beefed up its board and will be hitting the conference circuit, but besides those two aspects, the stock has been relatively vanilla this quarter.
Terra Tech Corp (OTCMKTS:TRTC) has positioned itself in the cannabis space as a company that engages in the design, marketing, and sale of hydroponic equipment with proprietary technology to create sustainable solutions for the cultivation of indoor agriculture in Newport Beach and Irvine, California.
TRTC operates through two segments, Hydroponic Produce and Cannabis Products. The company offers environmental controllers and timers; ballasts; bulbs; reflectors; nutrients; and portable hydroponic trailers and The Big Bud and Little Bud, which are custom fabricated proprietary cultivation systems for horticulture enthusiasts, local urban farmers, and greenhouse growers
Additionally, TRTC operates as a retail seller of hydroponic produce, herbs, and floral products, which are distributed in the Midwest and the Northeast United States; and produces and sells a line of cannabis flowers and cigarettes, as well as a line of cannabis pure concentrates, including oils, waxes, shatters, and clears to dispensaries in California.
The company operates through multiple subsidiary businesses, including Blum, IVXX Inc., Edible Gardens, MediFarm LLC and GrowOp Technology.
Blum’s retail medical cannabis facilities focus on providing the highest quality medical cannabis to patients who are looking for alternative treatments for their chronic medical conditions. Blum offers a broad selection of medical cannabis products including; flowers, concentrates and edibles through its Oakland, CA and multiple Nevada locations.
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TRTC’s last positive news item came from Edible Gardens, their subsidiary, which announced that they would showcase their proprietary SUPERLEAF™ lettuce, at the Fresh Summit Expo which was held in New Orleans. According to the company, one serving of Non-GMO project verified lettuce contains 2.5x as many antioxidants as blueberries and 5X more antioxidants than ordinary lettuce, helping to maintain metabolic health and wellness.
Such produce, which is meant to target consumers who seek to remain healthy, will ensure that TRTC is solidly positioned within the $648 billion healthy eating, nutrition, and weight loss sector.
On the financial side, TRTC’s revenues as at 2Q2017 stood at $7.8 million, a 15% increase from the $6.8 million posted in the previous quarter. Their good performance was further accentuated by the increase in their gross profit margin from 5.2% to 19.2% over 1Q2017 and 2Q2017 respectively.
Cost cutting also benefited TRTC as their net loss over the quarter reduced to $453,000 from over $10 million in the previous quarter, their most significant jump yet.
Moreover, their working capital base also took a similar turn with the figure as at 2Q2017 standing at $6.5 million from a negative position on $11.4 million in 1Q2017. Finally, their shareholder equity closed the period at $69.5 million from $50.6 million, a 37% jump in value.
Currently trading at a market capitalization of $197.66M, TRTC has a significant war chest ($6.7M) of cash on the books, which must be weighed relative to virtually no total current liabilities. This is an interesting operation and nice play toward the cannabis sector, if the company string together some rallies. You can bet we will update this one again as new information comes into view. Sign-up for continuing coverage on shares of $TRTC stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $TRTC, either long or short, and we have not been compensated for this article.