Good morning!
Sometimes it seems like the “green economy” peaked with the Prius. It’s all still in play, but it can be hard to find that blow-your-socks-off spark.
Terra Tech Corp. (TRTC) has a unique spin on “green” business that should set your socks to sparking when I deliver the details.
Up here, all you need to know is that TRTC expects its top line to swell from something like $500,000 a year at present into $10 million real soon now.
That’s 20-FOLD GROWTH in a matter of months! And if you dig down, that exponential estimate may actually be CONSERVATIVE!
So load the TRTC chart and follow the math. Down here at a run rate of $500k, these shares trade at 30 times revenue or around 20 cents.
You can’t exactly multiply the share price by 20 and come up with a target for what TRTC “should” be worth if it achieves its $10 million goal.
Read the growth press release again and there’s obviously some M&A on the table (good) and some dilution on the print (not so fun).
But dilution is already baked in here as the market has cut TRTC’s PPS in half! And now it looks like it’s found a “new normal.”
The good news is those clouds of dilution may be behind us. MACD is comfortably leading signal and yesterday’s price action was strong.
Throw in an RSI bouncing off the edge of “oversold” and it might be past time TRTC turned its beat around -- long-term trend lines are in space!
Either way, these technical notes are meaningful because TRTC isn’t one of those ghost charts so full of gaps that it’s impossible to “connect the dots.”
There’s real liquidity at this party and it shows up every single day! On average, those volume bars weigh in at 500,000 shares of juice!
So here’s a chart you can actually work with, whispers of a turnaround and a mind-melting growth profile. Time to say what TRTC actually does.
TRTC is all about urban agriculture. Apartment farming. Hydroponics and greenhouses and groceries you grow yourself. (Read more)
Sustainable, local, organic and nutritious: apartment gardening has the Prius-and-iPhone crowd in a lather. (See for yourself)
And TRTC hopes to be the company that gets rich selling dirt and seeds to environmentally sensitive yuppies!
It starts with buying GroRite, a 10-acre garden superstore in suburban New Jersey. Annual run rate: $4 million. (Read more)
Ellen DeGeneres is a GroRite fan! (Read more)
Add NB Plants, which sells potted food plants in supermarkets around the country under the “Edible Garden” brand. (Read more)
Buy the plant, harvest the veggies. TRTC is building new greenhouses by the acre to meet grocery demand -- and booking up to $2 million an acre. (Read more)
As I mentioned, put the two pieces together and TRTC is looking forward to $10 million a year. (Read more)
But what did they do before? “Fertilizer” for home hydroponic gardens. (Read more)
Sounds rarefied and smelly, but big players in that business can do $25 million a year. And TRTC has an angle that’s hard to beat...
They make grow-at-home medical marijuana kits at $42,000 per pop! (Read more)
A different flavor of “green economy” sure. But get it in front of traders who’ve gone berserk over “dispensary stocks” and light the, uh, fuse!
Suddenly home farming doesn’t look so square, eh?
Get TRTC under your skin and the chart on your screen. This one’s truly unique for its ability to fill wallets as well as salad plates!
See you on the boards!
Stock Analyzer
