Blum Holdings Inc (BLMH)

[sleekscape]

This is real vintage, from back in 2014

https://investorshub.advfn.com/boards/read_msg.aspx?message_id=109046544&txt2find=Typical|penny

The response was crickets...


WHY TRTC IS NOT A TYPICAL PENNY

I have never traded pennies before in my 20-year investing career until 2014.

I came down to the smelly bog pit of the OTC for one reason and one reason only: To see if any of these marijuana stocks had a chance to uplist to the NASDAQ within a few years.

The reason why I decided to look into the marijuana stocks on the OTC is because they are not allowed to trade on the Nasdaq due to the stigma/federal illegality issues -- if they were allowed to trade on the Nasdaq and/or were trading on the Nasdaq, then I never would have bothered coming down to the OTC as I would have done my DD on these MJ stocks on my preferred exchange.

So that means that if you are a public company in the marijuana sector in 2014, you are forced to trade on the OTC -- what are the repercussions of that?

And due to the taboo and stigma, especially pre-2014, it was very difficult to raise money in the private sector.

Because of these 2 unusual factors (not being allowed to trade on the Nasdaq / being forced to trade on the OTC and not being able to raise significant money in the private sector), I reasoned that some of these OTC marijuana stocks might actually be trying to earnestly make it as a real company to benefit both insiders and shareholders, and not just to enrich insiders as is usually the case on the OTC.

Think about it this way: It is 2011 and you want to start a marijuana company in the United States. You talk to your friends, financial connections, seed investors, venture cap guys, etc. and you find no takers for your business plan.
There really wasn't any private sector funding available to help you start your business.
And you know if you wait until there is private sector support for MJ companies, there will be a lot more competition for seed capital money.
So your only real choice at that time (2011), is to take your company public and raise money on the backs of shareholders.
A reverse merger is the best way to do that because it is less expensive, a much faster process, and most importantly has a better chance of being approved by the SEC in comparison to an IPO, which is more highly scrutinized.

So I reasoned that due to the above factors, there was a greater likelihood of finding a MJ stock on the OTC (that needle in the haystack that everybody down here seems to be looking for before they get burned, become jaded and then figure out that shorting OTC stocks is a far more reliable way to make money than going long down here) that might actually become a Nasdaq stock, in comparison to other more typical sectors where the process of weeding out the crappy companies is a lot more multi-layered -- you need to get money from friends and family to startup your company, then more money from non-relative investors, then more money from seed investors, then more money from venture cap, then more money from another round of venture cap, etc. before finally being able to go public via an IPO on the Nasdaq -- there is a tremendous weeding out process and crappy companies do not make it and are forced to go on the OTC if they want to make a run at being really successful and aren't able to raise any significant private capital.

So in the more traditional sectors there are only 2 real choices if you want to become a large company -- stay in the private sector and raise money there until you can make it on your own or start out in the private sector and then jump through all of these hoops in order to make it on the Nasdaq.
And Nasdaq/NYSE companies have so much more access to capital on much more favorable terms than microcaps on the OTC.
This is why most OTC stocks never make it -- sure most do not have any intention of ever making it -- but the ones that actually try rarely succeed, because both the private companies that have good access to capital and the public companies that are trading on the Nasdaq are much better capitalized and connected than microcap stocks.
In addition, the fact that a microcap is a microcap is often not by choice but because they were not able to raise enough money in the private sector or because they were not able to qualify for a big board listing.
So being a microcap company in and of itself is a marker of a company unlikely to be successful, a marker with very high predictive value for not making it.
So for the same reason that Walmart puts so many mom and pop stores out of business, private sector companies that are doing well financially along with publically traded companies crowd out and eliminate their underfunded microcap "competition"

If you are still following my stream of thought...

Being a company in the marijuana sector in 2011 that actually had real intentions on building something special meant that your two most favorable routes of financing the developmental stages of your business, private equity or publicly trading on the Nasdaq, we're both unavailable to you.
So rather than choosing to be on the OTC to try to make it, you were forced onto the OTC, as it was the only place to raise meaningful money at that time.

Because of this unique "forced onto the OTC situation", I reasoned that there just might be a Nasdaq stock in the making down here on the OTC marijuana sector. I thought the odds were poor and wasn't expecting to find one that met my expectations, which are not exactly low.

I researched as many MJ stocks as possible and narrowed down my field to 3 stocks. One turned out to be a scam, the other had a CEO that couldn't close a door...

And then there was Terra Tech.

The bottom line is that there are a unique set of factors which have conspired together to create a highly unusual microcap company. At the current point in time, whether you want to believe it or not, TRTC is the leader of the entire MJ sector.
And as a microcap stock no less.
How often does that happen?

Never.
The federal illegality of cannabis coupled with the lack of private sector funding have created a lottery ticket situation here.
Yes, sometimes there is really a needle in the haystack.

There are a lot of other reasons why I like TRTC as a stock, but the point of this post was to attempt to explain why I believe you are more likely to find an OTC microcap MARIJUANA stock needle in the haystack than an OTC microcap needle in the haystack in any other sector.

I am firmly convinced that TRTC is that 5-leaf clover stock on the OTC.

Regards,
Sleek