Over the last three months, Tera Tech Corp has seen gains over 500%. Though the company has yet to announce any new earnings reports, I am not expecting too much of an increase in sales as we are only at the beginning of the third month of recreational cannabis in Colorado.
Another reason I do not expect to see much in sales is due to the fact that we have to wait until May, June or July for the Washington State bureaucracy to officially announce open sales. Heck they just handed out the very first recreational growers license! Not everyone will be buying equipment if it isn't legal for them to grow.
Like FSPM, TRTC is also focused upon the food revolution of urban gardens and hydroponic systems. Use of hydroponic growing systems and urban gardens have been increasing year over year. Hydroponic systems are marketed for the facts that they requiring less water than traditional crops, are nonpolluting due to no fertilizer runoff, pesticide free as they are closed systems, produce healthier food and eliminate fuel costs as they are grown in urban populations. Cities all-over the world are turning to hydroponics.
They also offer products though traditional brick and mortar stores through retail partners.
Like a lot of other cannabis stocks, TRTC has shot up over the last three months (mostly on news). I think it will stay around its current price until Washington announces the first legal sales of recreational cannabis, or until TRTC releases their next financial report. If the financial report is good this stock has the potential to be a rocket.
CANN - Advanced Cannabis Solutions 03/06/14
Before you go out to buy grow containers, equipment, nutrients and seeds for a ganja grow, You have to have a place to grow your crop. This is risky for an individual property owner. The federal government has continually acted to seize property from landlords who rent to cannabis retailers in legal cannabis states, thus many land owners are unwilling to rent or lease their properties to cannabis businesses. This is especially true when it comes to cannabis cultivation.
Is this why we've seen a CANN jump over 1500% over the last three months?
Have we hit a tipping point in prohibition as property owners become more willing to rent to cannabis businesses? Or is the fact that a good paying tenant (willing to pay a premium for a good location) is worth the risk?