Terra Tech Corp (OTCMKTS:TRTC) Delivers With Q4 2016 Numbers

So far this year, shares of Terra Tech Corp (OTCMKTS:TRTC) have been a disappointment. The stock has traded in a narrow range on either side of the $.30 level. January and February saw TRTC trade above that level while March we saw TRTC below this level. Part of the reason is that TRTC is now considered pretty much the gold standard among cannabis companies and represents what investors would call a "Blue Chip" among pot stocks.Cannabis investors have been rushing into newer plays with lower floats and lower price points looking for the triple digit returns pot stock investors have become accustomed to. Last year, TRTC was one of those and we saw the big run from $.08 to $.7455 a share. Terra Tech now has 572,992,897 shares outstanding and that makes it a little harder for TRTC to turn into a cannabis runner overnight.While we're not expecting TRTC to post the big moves like it did in the past, TRTC remains the only US-based, publicly-traded company that touches every aspect of the cannabis life cycle—from cultivation, to extraction, to branding, and with Blum, to retail sale. TRTC also remains one of the only OTC cannabis plays that's gotten a clean bill of health after TRTC's auditor Macias, Gini & O’Connell removed the “going concern” disclosure in last week's 10-K.After looking through TRTC's Q4 numbers, it's easy to see why the auditor no longer has a concern over Terra Tech's financials. Total revenues for the full year 2016 were $25.33 million, an increase of 154% from $9.98 million in the year ended December 31, 2015. Total revenues generated for the quarter ended December 31, 2016 were approximately $7.13 million, an increase of 229% from $2.17 million in the same period in 2015. The Company had $9.75 million in cash as of December 31, 2016.Stockholders' equity for the year ended December 31, 2016 amounted to approximately $52.15 million, an increase of approximately $45.81 million compared to approximately $6.34 million as of December 31, 2015. Short-term debt as of December 31, 2016 amounted to approximately $564,000, compared with approximately $917,000 as of December 31, 2015. Long term debt increased from zero to $1.35 million during 2016, due to additional borrowings used for working capital and capital expenditures.What we liked most about 2016 numbers was that Terra Tech had previously forecast revenues of $20 to $22 million for the year. TRCT beat the low end by 25%, which is quite impressive and shows the demand TRTC is seeing for its cannabis and Edible Gardens products. Terra Tech is now forecasting 2017 revenues to be around $38 to $40 million. If Terra Tech beats this year like it did in 2016, we're looking at full year revenues of around $47 million, which we believe is doable, especially with California and Nevada legalizing recreational use. We believe demand is going to be much greater than investors realize. California tripled the size of the US cannabis market and Nevada legalization will go into effect this summer (July 1). Here's what CEO Derek Peterson said on the earnings call:

"While we continue to make a name for ourselves in the medical cannabis market, we now have a significantly larger potential customer base in both markets when it comes to adult use. We anticipate recreational revenues to start in California in the first part of 2018 and as I said earlier in Nevada in the second half of 2017. Combined with the recreational initiative in 2018, the implementation of that new regulation, California is also switching to a for-profit state."

It's also important to consider how much the company accomplished in 2016. Terra Tech started 2016 with zero retail dispensaries. Now the company has four in Nevada, one in Oakland and the San Leandro dispensary will open this summer. Nevada gets 40 to 50 million visitors a year, which is more than the entire population of Canada has with just 35 million people. California is the sixth largest economy in the world and the Oakland Bay area is a bigger market than the entire state of Colorado.Currently trading with a market cap of $157 million, we cannot stress enough how cheap we believe shares of TRTC are. TRTC is trading at just 4 times 2017 sales ($38m on the low end) and 3 times book value. The only other company that has accomplished what Terra Tech has done is Canopy Growth Corp (TSX:WEED) (OTCMKTS:TWMJF) in Canada, which has a US$1.3 billion market cap. We may no longer see the huge spikes TRTC has shown in the past, but we can't think of a better "buy and hold" for cannabis investors looking for exposure to the US cannabis market.We will be updating our subscribers as soon as we know more. For the latest updates on TRTC, sign up below!Disclosure: We have no position in any of the securities mentioned and have not been compensated for this article.