Momentum & Growth

Terra Tech Corp (OTCMKTS:TRTC) Expecting Big Things In 2016

Terra Tech Corp (OTCMKTS:TRTC) is one of the original pot stocks to get investors excited in the marijuana space. However, the company has not lived up to its hype or potential. The good news is that shares are trading near their 52 week lows and there’s not much lower they can go. Matter of fact, we at Insider Financial think the low is in and that 2016 is going to be a much better year for TRTC and its shareholders.

We think 2016 is going to be the marijuana industry’s big year. The reason being is that the marijuana industry has a lot of tailwinds heading into 2016. Roughly 14 states could legalize marijuana this year, adult-use cannabis or possibly both, either at the ballot box or through state legislatures. While it’s doubtful all those states will be successful, there’s a good chance at least a handful will legalize in 2016. No other single year has offered such incredible promise in terms of the sheer volume of states that could legalize, thanks to other pioneering marijuana markets and growing support for cannabis in general.

If all goes according to plan, TRTC will be one of the first to benefit from these changes. TRTC CEO Derek Peterson echoed these sentiments with his most recent update.

“We made significant strides in 2015 to help position Terra Tech as the premier company in the growing cannabis sector. We saw significant growth in our IVXX brand as we are now in 180 retail locations. Our Edible Garden produce became available in the greater New York City metropolitan area through FreshDirect, further expanding the footprint of the brand.  We secured eight medical cannabis provisional operational certificates in Nevada and we uplisted to the OTCQX. These successes are the result of our commitment to driving shareholder value and it’s a testament to the remarkable execution by our team. I am very proud of the accomplishments we made in 2015 and look forward to a successful 2016.”

TRTC is one of the only vertically integrated cannabis focused agricultural companies exposed to the complete life cycle of the supply chain of medical cannabis from cultivation, processing, bringing products to market, packaging, you name it. In the quarter ended September 30, 2015, total revenues generated from the sales by Edible Garden and of IVXX  were approximately $2.0 million, an increase of 53% from the prior year. Gross margin for the third quarter of 2015 amounted to approximately 18%, an increase of approximately 478% compared to a gross margin of approximately 4% for the third quarter of 2014. For the nine months ended September 30, 2015, total revenue was $7.8 million, a 39.7% increase compared to $5.6 million a year ago.

The big potential for TRTC is in Nevada. Here, TRTC has eight provisional licenses to grow, process, and sell marijuana. The first step is for TRTC to launch its IVXX brand within the next month or so. Nevada is a key market for the cannabis industry as the state will recognize the medical status of non-residents. With 40 million tourist arrivals to Las Vegas each year and more than 30% of those coming from California where medical marijuana is legal, you have the potential for Las Vegas to become the “Amsterdam of America.” Furthermore, recreational marijuana use will be on the Nevada ballot box come November.

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The one big issue we have with TRTC and mostly CEO Derek Peterson is that they have disappointed their loyal followers and shareholders ever since TRTC came public. Dilution, broken promises and failing to deliver are at the top of the list. However, many shareholders have stuck with the company through thick and thin. The good news is that we believe 2016 will be better for the marijuana industry and TRTC will benefit from the market’s renewed interest in pot stocks. Stay up to date on TRTC by signing up below and get our latest alerts on TRTC!

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Disclosure: We have no position in TRTC either long or short. We have not been compensated for this article.

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Terra Tech Corp (OTCMKTS:TRTC) Expecting Big Things In 2016
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