In more exciting news for the pot industry, one of their players: GreenGro Technologies Inc (OTCMKTS:GRNH) is also enjoying a surge in its share price.In a turn which went further to exemplify what has been happening to the pot industry, the company released yet another set of positive news to the market, sparking the share price action which played over the course of Tuesday and Wednesday.The above-mentioned share price action led the company’s share price to rise from its previous price which stood at about $.027 to their high of $.041. This 51% increase as shown in the chart below: GRNH Daily ChartThe above action has, however, not held up till now.It seems that much later; the price made a correction. Presently, as a result, the company’s share is trading at just about $.034, significant of a 17% decline from its previous high.The view from some in the market is that the reason for the price increase may have been the ‘alert’ made to the market by Timothy ‘Tim’ Skyes. As a result, his large group of followers may have reacted to the news by purchasing the stock in high volumes, vamping the price up to levels higher than its actual value.Given such a price surge and consecutive decline in the same, we decided to have a look at the stock and evaluate the management’s value proposition prior to providing our view on the signaling effect of the alerts by Tim Skyes on this and other companies’ share prices. GRNH: A Brief OverviewFounded back in 1996 with its headquarters in Westminster, California, GreenGro Technologies Inc was previously known as Authoriszor, Inc.Through its period of Morphosis, the company anchored itself within two key industries: energy and agriculture, through the provision of eco-friendly green technology to both commercial and consumer farmers within the agricultural sector. As a result, the company’s strategic alliance with energy player: Solaris Power Cells has been pivotal to their success to date.The company prides itself on having the best scientists doing their research and development for them. Through this, it has since pushed the envelope and decided to venture into the cannabis sector where they provide their services for companies to ensure they can regulate best their farms to ensure their produce is up to standard.The Morphosis of GRNHEarlier this year we reviewed the company – the review can be accessed here – and found some of the changes they were willing to make as a result of the new cannabis laws in California. Since then, there have been a number of changes which have been made, some of which are as follows:Research Breakthrough and SEC reportingBack in July, the management at GRNH announced that they were positive that some of their scientists at Genobreeding had discovered a strain of cannabis which was preferred by the market. As a result, GRNH was to utilize this new breed of cloned cannabis strains to ensure that they produced premium cannabis produce and marketed themselves as such, ensuring that they ventured into the market atop a premium brand.During the same period, they also announced that they would be having an experienced accounting firm ensure that their accounting framework is in line with SEC public filing regulations. This pivoted the company towards their end goal of being a fully-reporting SEC compliant public entity.The News That Rocked the Market and Its PromoterIn a more recent turn of events, GRNH has merged forces with County Line Energy Corp’s wholly-owned subsidiary, D5 Partners as well as Vertical Hydrogarden to work on the ongoing development of Grow Box 5000 family of products.To bring this to context, Vertical Hydrogarden is a California-based company with a wide global online presence as well as having a physical presence at Orange County. It operates by offering a wide array of options to its clients including retail - grow systems, consulting and supplier services.Over the course of this project, Vertical Hydrogarden will purchase the rights to future distribution of the Grow Box 5000 products while GRNH will provide testing as well as quality control services to the entire project.Through this, the company expects that their revenue base will receive a significant jab, ensuring that GRNH stays atop their current profit position – given that they have positive earnings per share of US $1.918.The Tim Skyes EffectHowever, the key piece of information stems from the fact that the above news, despite being released by the company, didn’t affect the stock’s share price until it was re-announced by Tim Skyes.Tim Skyes rose to fame when news about him making over US $1.65 million a day while studying in Tulane University – you can read more here. He has since oriented his approach as being a teacher whereby he brings the world up to speed with the current happenings in different markets in a way to ensure that they benefit from stock upticks and movements. On his page, Tim Skyes reviews different penny stocks and spreads news of price movements to the market at large.It was here that he promoted GRNH stock to his audience, a move which led people to purchase the stock in high volumes. As a result, the question arose: did the stock rise as a result of the value proposition or was it merely a reaction to the source.Well, in our view, a bit of both actually affected it.The debate about the nature of Tim Skyes as a promoter – a person who sends certain information to promote a specific stock – has been ongoing. Courtesy of his website having a huge following as well as his infamous track record, it would be reasonable to believe that any news or view expressed on the website would have an effect on the share of the specific mentioned company.However, in this particular case, his role was quite particular: he saw the value in the stock and opted to inform the market about it. This, therefore, explains the fact that news by Tim Skyes wasn’t the only driver of the share price surge experienced in the market.All in all, there was some value in what was announced by Tim and the company is bound to benefit from it. However, true value will be seen upon the end of the correction period as well as going forward when the company actually implements the promises it has made to the market.ConclusionDespite there being the Tim Skyes effect, GRNH has actually made major steps towards providing value for its shareholders. As such, there is a lot to look forward to going forward; the key being the share price of GRNH going upwards.We will be updating our subscribers as soon as we know more. For the latest updates on GRNH, sign up below!Disclosure: We have no position in GRNH and have not been compensated for this article.
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