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.