SOLID CONTROLS INC (OTCMKTS:SLDC) Growth Prospects Questioned On Lack of Crucial Updates

SOLID CONTROLS INC (OTCMKTS:SLDC) transition into the cannabis industry has not been a smooth one, as the stock has underperformed amidst waning investors’ confidence. The stock is currently languishing at all-time lows, in what appears to be as a result of the company’s underperformance when it comes to business plan execution.While in our previous update we detailed how the stock was oversold and due for a bounce back, things are not looking good anymore. Solid Controls has struggled a great deal to provide updates needed to justify its growth and long-term prospects. The lack of information has left investors with no choice but to take a pause on any investments in the stock, seen by months of consolidation in a tight trading range. SLDC Daily ChartThe stock has lost more than 80% of market value over the last 12 months and as it stands things are not looking good. While trading volumes have improved in recent trading sessions, the stock has remained suppressed in a $0.0182-$0.0243 trading range.Despite a recent spike from lows of $0.01 a share, the stock remains susceptible to further declines given the strength of the bearish run. On the upside, the stock will have to close above $0.03 level to have any chance of bouncing back from the lows.Solid Control Business DescriptionFounded in 1968, Solid Control used to design and manufacture integrated machine controls for the plastic industry. However, in the recent past, it has tweaked its business model and now seeks to be a major player in the medical cannabis industry.The company is seeking to become a grower of organic medical cannabis in soil without the use of chemicals. The company has eight strains of organic medical cannabis that it is currently developing.Medical Cannabis AmbitionsMid last year, Solid Control provided an update on how it intends to grow with integrity in the medical cannabis space. The company made a commitment to produce the highest quality medical cannabis that meets the growing demand for premium products in the market.In a bid to gain an edge in an industry that is consistently attracting new players, Solid Controls reiterated intentions to grow organic medical cannabis in soil without the use of chemicals at any stage of growth.

John Stovers, President and CEO of Solid Controls, stated, "We plan to grow with integrity and a commitment to our patients to produce the highest quality medication possible. We are focused on quality over quantity and aim to meet the growing demand for premium medical cannabis from patients looking for certified organic products that are free from all contaminants."

The company also announced plans to develop and approve additional proprietary organic strains for medical marijuana. It is also believed to be working on developing a range of cannabis oils for use in numerous potential applications.What next Fast forward, the company is yet to issue an update on how far it has gone or what it has achieved, ever since it made the proclamation. Investors are still in the dark on whether the company has made any harvest on medical cannabis or come up with products to pursue customers in the industry.The lack of updates has been the biggest undoing in the stock’s sentiments in the industry. While the global market for legal regulated cannabis is enormous, investors still need to know where the company stands when it comes to pursuing opportunities in the space.The only piece of information available to evaluate the company’s ongoing and financial position is an earnings report for the nine months ended December 31, 2017.For the nine months ended December 31, 2017, Solid Controls generated net sales of $3,919. Operating expenses for the period stood at $955. The company says it generated a net loss of (-$2,964) an increase from a net loss of (-$1,924) for the year ended March 31, 2017.The value of the company’s assets as of December 31, 2017, stood at $190,327 with total current liabilities of $86,990.What Next for Solid ControlThere is no doubt about the growth opportunities in the medical cannabis space. More than ever, the market continues to expand at an impressive rate and the trend is poised to continue as more people take note of the medicinal benefits of the plant.Solid Controls is one of the many companies gunning for market share in the exciting business. With North American marijuana sales poised to surpass the $21 billion mark by 2020, more and more companies are entering the fray.Entry of more players essentially means an increase in competition, of which, only the companies with the financial muscle and exciting products would be able to survive the onslaught. As it stands Solid Controls, remains well positioned to be a key player given that the industry is still in the early stages of development.However, the company could end up paying a hefty price on lagging behind in coming up with products needed to curve a significant amount of market share in the space. The company needs to be aggressive as it moves to start cultivating organic medical cannabis if it is to enjoy the fast mover advantage needed to shrug off competition in the space.Until the company provides a clear update on the milestones achieved upon entering the medical cannabis space last year, the stock looks set to continue trading in a downtrend given that short sellers are still in control.Disclosure: We have no position in SLDC and have not been compensated for this article.