GrowLife Inc (PHOT)

[Alan Brochstein]

Thank you. No, I am really trying to avoid being seen as a mover of stocks, so it bothers me when people try to pin this on me. The stocks sold off mid-day, my article was out in the morning. It was actually just a common-sense article - for those who didn't read it:

Conclusion

Pot is hot, no doubt. The market is being flooded with demand for a limited supply of shares. Worse, the stocks that investors can buy have weak fundamentals historically,with some having questionable business models and terrible transparency. I have shared several strategies for those invested in the sector to consider, and new investors should take time to get to know the companies before just jumping in.

Here were the damning things I said about PHOT:

GrowLife (OTCQB:PHOT), which was the best performing stock in the sector in 2013, has already more than doubled.

By the way, did anyone see the article that came out on Bloomberg - maybe this was part of the catalyst. I honestly don't know - I have been busier than an ER nurse or an air traffic controller.

http://www.bloomberg.com/news/2014-01-09/pot-shares-rally-21-to-1-700-as-speculators-see-green.html

I wonder if this guy is getting ripped...

I posted a negative comment on that PHOT SA article, as I said. Let me repeat: The article was crap. I don't work for SA. I don't approve articles. I barely read any - too busy. SA doesn't give advice, it lets people publish opinion.

Some have asked me to write a follow-up - not sure I can, but I am trying to think about how to do so. I will not come out and tell people that they should buy PHOT at .26, but maybe there is a way to address it. By the way, I was asked to write an article about MJ stocks that will be published next week in a pretty interesting place. There are no tickers mentioned, but I am highly critical of certain practices of certain companies. While I don't say PHOT, anybody who follows the space will know what I mean when I praise this unnamed company for owning up to a revenue short-fall, which they did on a live interview that I helped arrange by the way. To think of me as anything but a friend to PHOT is simply absurd. Sorry if I thought the whole sector was overdone - it was.

Hi Alan,

I appreciate you posting here. If you could write a rebuttal article on SA to the one released today, that would be best.

If not, I understand. It is a difficult website to work with and you don't want to come off as a manipulator after just writing your previous article on cannabis companies.

If, at the very least, you could provide some of your insight on PHOT and where you think it is headed over the next 1, 6, 12 months, I know that I and many others would greatly appreciate it.

Thank you for your work,

Chris

I have no change in view on PHOT. My view on price is really not important. I would prefer to talk about the fundamentals. My guess is that I have been too conservative. In the fall, my target was .125 a year out. I raised it to .17 when they announced GIFT and higher after CANX. The current price is higher than where I think the stock will be in a year, but I am the first to say that things change and I could be way wrong. Pay attention to my observations perhaps, don't worry about one man's view of price. I would NEVER tell anyone who is a LT investor to sell the stock right here. Too much possibility. I would say that there is a risk it could fall further, but I don't predict that. I won't be sharing price projections on SA by the way. I don't want that responsibility.