Dragni Dragnev

Growlife Inc. (OTCBB:PHOT) Soars On Media Coverage

by Dragni Dragnev March 17, 2014

Growlife Inc. (OTCBB:PHOT, PHOT message board) jumped 7.89% on Friday, propelled skyward by media hype.

Mr. Sterling C. Scott, Chairman and CEO of Growlife, was interviewed by Donald Baillargeon on MoneyTV. The footage hit the wire on Friday and the splash it caused has pushed PHOT up the charts significantly, helping PHOT reach a high of $0.588.

In this interview, Mr. Scott talked abut a lot of things – PHOT's goal to reach a billion dollar market cap, move on to the major exchanges, become part of mainstream business in US. He admitted that PHOT is not yet “Morgan Stanley investment grade”, but expressed his certainty that such a time will come soon.

As is often the case with pot-stock media coverage of late, hopeful optimism was abundant and the interview overflowed with well-wishing, as well as boastful planning. What the 7 minute long footage didn't contain was information on the company's commercial success to date, a clear statement on its current financial standing and details about PHOT's future growth plan. Although it was supposedly aimed at informing potential investors about company affairs, it did little more than shamelessly promote PHOT stock. It was successful in that respect, but as it stands it's unclear how long this ascent will last.

The fact that such publicity stunts seem to be the only thing keeping PHOT afloat is also somewhat disconcerting. There is still some time until the company's annual report for 2013 is due, meaning investors may be in for a bit of a wait until it becomes clear how the marijuana hype has affected the PHOT's commercial standing. Meanwhile, the only reliable source of information on the company is its latest 10-Q, which wasn't impressive at all:

  • Cash - $190 thousand
  • Total current assets - $1.2 million
  • Net revenue - $1.3 million
  • Net loss - $1.8 million

PHOT's very latest filing is also worth considering. Said 8-k, filed on Feb 13, 2014, can also be considered a cause for alarm – it showed that, on Feb. 7, 2014, PHOT's authorized shares of Common Stock have been increased from 1 to 3 billion. The 8-K doesn't really give a reason for the increase, but the fact that the change has been made should make investors wary of potential dilution.

Other companies in the branch weren't so lucky on Friday. Terra Tech Corp. (OTCMKTS:TRTC) and GreenGro Technologies, Inc.(OTCMKTS:GRNH) both fell during that session, by 7.26% and 13.04%, respectfully.

Comments 21

1. Guest
March 23, 2014, 09:39AM

Quotes Terra Tech did never have any RS, that's the Problem
of MJNA & PHOT only, where PHOT by AS of 3 Billions
has very much space for its RS & Up-OS to repeat
again and again like a Yojo to really fool the
Investors by its also faked PHOT businesses
and/or resulting Lawsuits !!

Hoppla - Its Some News ??


2. Guest
March 18, 2014, 09:08AM

Quotes look at terra tech. this stock got 2 splits. terra tech hit 1,40$.
grow got just 1 split. and is at 0,77$. i see much potential in growlife. definitive a buy.

3. Guest
March 18, 2014, 06:26AM

Quotes Think about whats going on if Alaska legalize marihuana. BoOoOoOom. More customers. And more are following. Growing business.

4. Guest
March 18, 2014, 06:10AM

Quotes i´m sure grow hit in 2014 4$ or more. it´s just starting now to explode.

5. Guest
March 17, 2014, 08:53PM

Quotes Great point! Not to mention that $200m+ has come over the last 3 trading sessions, absolutely love ATTBF as well! I got in at .48c like 10 days ago, current share price $1.63 up .43c today alone. Good call MNTR as we'll, up over $4 since I bought in last month!

6. Guest
March 17, 2014, 08:42PM

Quotes Over$200m has flowed in jumping the mc to over $500m, uhhh I think I'll continue following the $$ not to mention the volume has been great! Big up's to PHOT,ATTBF and MNTR!!!

7. Guest
March 17, 2014, 06:39PM

Quotes Again, did you attend "SAID" shareholder meeting? I was there. GrowLife has a strategic plan. You might really make an effort to do your due diligence. Actually- what are your qualifications. Are you an accredited investor with a MBA from a top business school?

8. Guest
March 17, 2014, 06:36PM

Quotes Your style, as usual, is similar to the China Daily News. Is that where you grew up? I recommend you have your writings vetted. They are entertaining, in a very sad sense.

9. Guest
March 17, 2014, 02:18PM

Quotes Here is research


10. Guest
March 17, 2014, 02:17PM

Quotes I would rather pull out of Megan Fox than PHOT. I AM LONG ALL THE WAY. DOLLARS DOLLARS DOLLARS :)

11. Guest
March 17, 2014, 02:16PM

Quotes LAUGHING TO THE BANK, almost no longer a penny stock lol , knew this company was going to explode since .02

12. Guest
March 17, 2014, 02:15PM

Quotes PHOT is going to hit a dollar tomorrow and this guy is really going to cry to his mommy. I am long on PHOT. They got some big things coming this next year just watch.

13. Guest
March 17, 2014, 02:14PM

Quotes f*ck this guy im up 1500% hahaha
to the moon!

14. Guest
March 17, 2014, 01:03PM

Quotes Please try a little harder next time to sound less biased.

No reason for increase? Dude, if anything was clear about this stock, it was the reason for the increase. Get real.

15. Guest
March 17, 2014, 12:44PM

Quotes Yup nothing happened. Nothing changed since last september. What a clown

16. Guest
March 17, 2014, 12:34PM

Quotes Oh gosh ...are these people getting paid to do this?

17. Guest
March 17, 2014, 12:14PM

Quotes Haha, hard to take seriously with that hair. Getting obvious how all this works. Cause there is no way you wear your hair like that in real life. You are a fiction. Of all the pot companies, there are much better ones to short that aren't filing with the SEC. Go short HEMP or something like that. Of all the pot stocks you are going to short, you are actually short the one that actually has revenue. Idiot.

18. Guest
March 17, 2014, 10:55AM

Quotes Is this guy using the same article every day and just changing the title? This is the third one in three days? BTW - I'm pretty happy with my 72% return on PHOT in three months.

19. Guest
March 17, 2014, 10:47AM

Quotes Seriously, we get it. You went short and lost and now you're upset. Go cry in the corner.

20. Guest
March 17, 2014, 10:36AM

Quotes numbers from Sept.30

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