GrowLife Inc (PHOT)

[MikeyInTheD]

The cash burn is the major issue with the company. They are running out of options for continuing operations after the last round of financing. It seems like terrible timing to be trying to build an unrelated flooring business when cash is limited and expensive to raise. I like the company’s assets, including the flooring business, but think the share structure and capital costs will force the shares to the trips and eventual reverse split that will crush any remaining value. The company had such a head start on the industry by getting involved before legalization was the biggest trend across the country. They’ve done nothing with their first mover advantage and now should cease operations if they cannot scale up to cover the overhead costs which eat away at otherwise decent margins after cost of goods sold.