Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
I can see why TRTC put out fluff PRs because they relied heavily on selling shares for financing their growth.
That was why I suggest they must now look for private placements for financing their next stage of business development.
If the dilutors resurface, I will unload part of my shares. Don't like to suffer 10% haircut everyday, a week at a time.
Many REAL MJ companies I know are silently building their business infrastructure, no dilution, no fluff PR, just honest hard work. And most important of all, albeit lack of liquidity and volume at times, their stock PPS has been staying around the same range for a long time now.
The future to me is a big unknown because the company's lack of transparency. I've no idea what each Medifarm LLC means in terms of share holder values. Perhaps next Q report will help me understand it better.
Problem changes throughout time because of invention and progress, history doesn't help, understanding the problem and its underlying dynamics does.
You repeat it because you don't understand the problem and its dynamics...
PPS is affected by both past and future events. But if one truly understands the current underlying dynamics that is driving the optimization problem you are solving, you can pretty much ignore the past.
People repeat the same mistake because they don't understand the problem at hand and not because they didn't read the history.
The dynamics of TRTC PPS is a black box to most. The information I want to know include what is the long-term and short-range goals of TRTC management and do they include shareholder values in their optimization equations? Do local politics affect TRTC decisions and in what way? Why do TRTC create so many separate LLC entities and how does that affect shareholder value in the long run?
Very few willing to buy at ask which indicates most buyers are traders not new investors. Most of them will bail on the next bump.
Are you always looking back at the past? Let's worry about the future. How do we get more buyers? How about a PR to announce the end of toxic financing? OR perhaps it is not really over yet?
In the parlance of information security, the term "Separation of Duties" describes a mechanism for ensuring security. This is how it works: You train each monkey to perform one simple but different task of the whole process, so that no one monkey know how the whole thing works.... unless they learn how to cooperate and share information which is very unlikely in less-evolved primates where greed and individualism dominate.
Dilutors have been a no-show for almost a week now and spared us poor shareholders enough coins each day for a happy meal at McDonalds' all day breakfast.
Hope this continues...
Let's think about this...
Last year when all other MJ companies were attending investor conferences, TRTC was missing in action. Now DP starts to talk about going to investor conferences? Why a year delay?
If NV build out is held up by politics, what are TRTC management doing in their spare time? Getting their hands dirty and helping out AJ on extraction? Or attending to their own separate private businesses?
Everything they do seems to progress in a slower pace than everybody else. Private MJ companies that have no luxury of exchanging shares for cash and have their own money on the line would be much more expedient.
It is amazing an MJ company in Oregon opened its first dispensary on the first day of legalization and a second one few weeks later, while TRTC just talked about it for almost a year.
TRTC's second extraction lab should have been operational long time ago, why all the delay? What have TRTC been doing during the last few months?
TDAmeritrade is showing GBLX PPS at 1.32 a 262.14% increase pre-market.
Back down to 0.345 at 9:30, what a disappointment.
What progress?
Being available in increasing number of dispensaries is not progress.
Rather the better barometer of progress are the profit margin per IVXX sale and how many products are being sold per day per dispensary.
And are both these indicators improving over the last few months?
TRTC could very well be selling in 3000+ dispensaries with a few products sold each due to the production limit of one extraction lab.
It seems my prediction was right.
In the last few weeks, the dilutors have been selling into bids so ferociously that it took out a lot of low bids and leave many asks hanging. This created a vacuum effect that once dilution eases, opportunistic buyers stepped in and caused PPS to surge for a day or two.
Now we are back to the original level with the same problem: very few new buyers and low daily volume. And like it or not, once the dilution resumes, the PPS will continue to decline.
This is not about how many dispensaries IVXX is in. This is about how many products can a lab produce to keep supply higher than demand and profit coming in uninterrupted.
Let's say a lab supplies at most 125 dispensaries while satisfying the above criteria. 3000+ dispensaries in CA translates to 24+ labs.
If TRTC relies entirely on selling shares for the build out, we can expect further declining PPS.
IMO, this is unlikely to happen. People with money and ego as big as DP's will rather start their own brand than to license others. After all, running an extraction lab isn't that hard.
Only Until IVXX reaches large-scale recognition and unlimited budget for advertising and sale network will it become compelling.
TRTC at this juncture needs a lot of cash to bootstart their profit generating engine. Relying on toxic financing alone, TRTC will most likely be stuck in the vicious cycle of declining share price and stagnant progress, while competitors gnawing at their profit margin.
Chipotle becomes national chain from large cash infusion of angels and not by slow accumulation of cash from selling shares.
If they can not find ways to reward shareholders because of federally illegal status, they need to be transparent about it and stop all toxic financing and share dilution scheme and use private placement for growth exclusively.
Shareholders will come when profit starts rolling in.
I question DP's effort in looking for private placement. I can see how a conversation between an potential angel and DP went like this:
Angel: How about I give you 20 Mil for 51% of the company?
Devil on DP's shoulder: No way, we can dilute our share to get the same funding we need while retain control of the company.
DP: No.
Angel: How about I give you 20 Mil for 30% of the company and 5% royalty on every IVXX sale until it becomes profitable ?
Devil on DP's shoulder: Why do we want to share profit with a third party while we can keep them all to ourselves with a private company called IVXX, LLC.
DP: No.
Angel: Okay, I'm out.
Almost all successful companies went through the similar stages of incubation, graduation, acceleration, and IPO.
TRTC, which went IPO first, its business plan and past execution has brought it to the graduation phase.... but to make it a nation wide brand from a few labs in CA and NV. It needs a lot of cash quick. To make that happen, you almost always needs angel investment to speed up the process. (and hence these angels are known as accelerators.)
I am a investor with grave concerns and if situation doesn't change, I am going to divest some of my TRTC holding to other companies or sectors.
Those are just a few examples. There are others: foreign and silicon valley investors (there was an article about high tech angels looking to divest into marijuana sectors.) etc.
The only concern for TRTC management is losing control of the company to large shareholders. But without large cash infusion, I don't think TRTC can grow any faster and meanwhile all shareholders suffer.
"toxic financing" is how small companies fund themselves, it's only semi-toxic by the way, and they were upfront and transparent about it.
The dilutors haven't shown up yet. My estimate is another 500K shares will be released today.
when it hits a low it almost always bounces.
A successful Chancellor has to be an executive with the political skills to respond to internal and external constituencies; an administrator with the technical expertise to manage billion-dollar budgets and thousands of employees; and an entrepreneur who can create a compelling vision for the future of the campus that inspires faculty, students and staff, as well as private donors whose support the Chancellor must cultivate.
I begin to realize the so-called dead cat bounce is a result of dilutors selling into bids so fast that it creates a vacuum. That vacuum later causes an updraft which sucks the dead cat upward. Dead cat bounce is not caused by involuntary muscle twitches as most believe.
They probably decided to unload partial amount of shares to hedge against the prospect of declining share price. IMO.
Selling at 0.09, magna's profit margin is way higher than 100%. That is why it was called toxic.
When volume is low, magna's dilution stands out like Lebron James visiting a midget's convention.
Hope it won't repeat Friday's pattern. Dilutors usually show up around 11:30 to 12:30 EST and again near market close. Maybe too early to mention it's signs to come?
The volume is still low and therefore PPS is still vulnerable to sudden large blocks of sells into bids. And the only people selling large blocks at this level are most likely dilutors.
All these profit won't appear on TRTC's balance sheets since it is still federal illegal for a public company to sell cannabis. The only benefit that can be realized for TRTC shareholders, if they even consider it, is the reduction in share dilution and possible dividend payout.
If TRTC can pass my continuing scrutiny, I will rate it a buy. Until then, this is an information warfare I enjoy engaging in and hopefully learn from it as well.
Like the new show on ABC, Quantico, every one has hidden motivation posting this board, just need to figure out what the truth is.
Since subsidiaries maintain separate books, profit from IVXX LLC won't show up in TRTC's financial report until a feedback mechanism is implemented. (Read article below)
How Do Subsidiaries Pay Revenue to Their Parent Companies?
Until IVXX profit shows up in TRTC financial report, I have my doubt whether it will benefit share holders. So far, the only revenue in TRTC financial report is from EG sales. IVXX profit is only mentioned in a footnote and probably goes to IVXX LLC - a private company.
I am not so confident. I also hope it can go up big, but from Friday's selling pattern, the dilutors' fingers are also on the trigger, waiting for this moment to unload large chunks. And they will do it with or without the volume to match.
Unless they can automate the manufacturing process to reduce unit cost and increase production yield, I am not sure if a few labs can meet demands with comfortable profit margin.
Currently, extraction is a highly manual process. Like auto production lines, once a machine in the chain breaks down the whole production stops.
Debating on this forum won't change the fact that magna is still diluting. Even if all posts here are pro-TRTC, volume will still be not enough to counteract the sell pressure. The ball is at TRTC's court to start a real media run, not a phantom article in Newsweek, to bring in new buyers.
There is one exception to the requirement of consideration and that is a deed, which is a contract "under seal" or a "specialty contract".
In centuries past, persons contracting would drip a drop of hot wax on the bottom of the contract and press a family ring into the wax, thereby signifying consent to the terms of the document.
Nowadays, deeds are used mostly - if not an outright statutory requirement - in contracts that involve real estate.
In legal theory, if a contract is a deed, then no consideration is required. If charitable donations are made under seal, they are valid contracts even though there is no valid consideration.
The $10 consideration is to elevate a gift to a contract so that it can be protected by contract law. The issue still stands. Did trtc spent 300k on the purchase as reported? Or was that mainly a gift from someone?