Terra Tech Corp (OTCMKTS:TRTC) Is About To Take Off

Recent events have seen the share price of Terra Tech Corp (OTCMKTS:TRTC) rise and plummet over the past few months with the latter happening over the past three months to close the share price at $0.2137.This dip from $0.5 in December last year has investors in a frenzy as they are worried about the future of the company.The trading volumes as can be observed in the chart below are commensurate with a significant rise of a dip in prices, signifying mainly the effects of sell-offs of the stock on its share performance. TRTC Daily ChartThis has necessitated our interest in the company as we seek to answer any investor’s question: is TRTC actually creating value for its shareholders?In a bid to do this, we will look at their products, new ideas and investments as well as tag a timeframe to their payoffs and finally assess their financial performance over the recent past. We trust that by the end of this read, one will ably make an informed decision on investment in TRTC.However, let’s first get readers acquainted with TRTC and its operating environment.TRTC: The Past and PresentTerra Tech Corp. operates through multiple subsidiary businesses including: Blum, IVXX Inc., Edible Gardens, MediFarm LLC and GrowOp Technology to grow and distribute cannabis to the US market.The Company's wholly-owned subsidiary, Edible Garden, cultivates a premier brand of local and sustainably grown hydroponic produce, sold through major grocery stores such as ShopRite and Walmart.Their focus on cannabis has elevated them to their current position, however, their move to acquire Edible Gardens went to show their need to boost their revenue base through diversification.Currently, the company is working towards growing their revenue base with their management doing this through acquisition and financing capital expenditures. These moves seem to be impacting them positively already.TRTC: The FutureTheir most recent positive announcement came from Edible Gardens, their subsidiary, which announced that they would showcase their proprietary SUPERLEAF™ lettuce, at the Fresh Summit Expo which was held in New Orleans.According to the company, one serving of Non-GMO project verified lettuce contains 2.5x as many antioxidants as blueberries and 5X more antioxidants than ordinary lettuce, helping to maintain metabolic health and wellness.Such produce, which is meant to target consumers who seek to remain healthy, will ensure that TRTC is solidly positioned within the $648 billion healthy eating, nutrition and weight loss sector. The expo therefore served as a marketing strategy for the firm as they seek to get the product to the market as soon as possible.This, however, isn’t the best part yet.The company’s joint venture with NuLeaf Inc is bound to get them to the next level.NuLeaf is currently in the process of constructing tow facilities in Nevada: a 30,000-square foot cultivation facility in Sparks as well as a 15,000-square foot facility at Reno, both which are expected to be complete in the fourth quarter of 2017.The facilities are bound to fast track Terra Tech’s cultivation and production plans as they seek to meet the growing demand for cannabis and its related products in Nevada and within the new states it targets, something which the NuLeaf CEO further reiterated.According to CEO Derek Peterson:

"Entering into this agreement is a meaningful accomplishment for Terra Tech… This strategy enables us to rapidly move forward with capitalizing on the Nevada opportunity by granting access to new distribution channels and allowing us to grow market share, while maintaining financial discipline over our capital expenditure.”

Source:Against this backdrop we conclude that over both the short and long term, the company is expected to grow courtesy of the short time frame between now and completion of their projects. The only limiting factor would therefore be poor financial performance which we have assessed below.Financial PositionThe financial position of this $184 million company with over 154 employees is quite strong. Their performance has been ever-growing with every quarter as can be seen in the analysis below.Their revenues as at 2Q2017 stood at $7.8 million, a 15% increase from the $6.8 million posted in the previous quarter. Such information speaks to the earlier stated commitment that their managers have towards making the company a success and strong brand within the industry.Their good performance was further accentuated by the increase in their gross profit margin from 5.2% to 19.2% over 1Q2017 and 2Q2017 respectively. This goes to show the work they had put into ensuring that they fund more efficient methods of acquiring their inputs during this quarter.Moreover, their operating costs per unit revenue fell from 93.6% to 76.9% which further illustrates the managements’ foothold on their expenses.The above cost cutting strategies paid off.Their net loss over the quarter reduced to $453,000 from over $10 million in the previous quarter, their most significant jump yet.Moreover, their working capital base also took a similar turn with the figure as at 2Q2017 standing at $6.5 million from a negative position on $11.4 million in 1Q2017. Finally, their shareholder equity closed the period at $69.5 million from $50.6 million, a 37% jump in value.All these go to show how strong their financial base currently is as well as how hard management is working towards ensuring their costs are maintained at their lowest position as they work toward making profits. As such, this company is a strong buy both in the short and long run especially since their outlook seems quite promising.ConclusionTRTC represents one of the success stories in the market. Their strong financial position as well as concise and structured business makes it easy for investors to assess opportunities with them. Overall, there are compelling reasons backing the proposition to invest in the company as the upside will be quite high over the long run.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 TRTC and have not been compensated for this article.