The Ground Shifts Under Terra Tech (TRTC)

A research report put out by Goldman yesterday failed to keep the ground from shaking underneath the feet of traders in Terra Tech (OTC: TRTC). Perhaps traders were confused by the name Goldman, which in this case refers to Goldman Small Cap Research out of Baltimore, Maryland, and not the big house in New York City. In his report, Robert Goldman, a former analyst with Piper Jaffray and mutual fund manager, noted the demand for hydroponically cultivated produce has risen dramatically in recent years. He added that Terra Tech’s top line could benefit from these trends.

The release of the research report came on the heels of a press release announcing a strategic relationship between the company and a hydroponic produce farm in New Jersey by the name of Edible Farms. The joint venture calls for the construction of a commercial hydroponic greenhouse. Edible Farms currently sells hydroponic produce to major retailers in the northeast United States. Terra Tech will own 51% of the project. For its part, the company is responsible to secure the financing for the greenhouse, which could be as large as ten acres. In what seems like a trend lately with other small cap companies, traders have to wonder if this means an offering of additional common stock in the near future.

Buyers of Terra Tech shares appeared unable to take a firm stance during the early part of the trading session. The stock gained a few pennies at the opening to trade at a high print of $0.42 for the day. Sellers grabbed their shares and plowed the stock to $0.28 before the first 90 minutes of trading had expired. Share prices remained rather flat for the remainder of the session and the stock ended the day on the session low and a loss of nearly 28% to finish down nine cents at $0.28. Traders exchanged shares like a hot potato as volume on the day amounted to 738,000. On an average day the number of shares traded equals 88,000.

Shares of the hydroponic agriculture company began actively trading in the middle of August. In the first nine days of trading, the company’s share prices ranged from a high of over $0.80 to a low trade at $0.21. Since late August, the stock has traded in a range basically between $0.40 and $0.30.

Other recent news for Terra Tech includes a press release on September 12, 2012, announcing a product launch for environmental controllers used for indoor and urban agriculture.

On August 22, 2012, the company revealed its alliance with Family Hydroponics, which operates 36 hydroponic stores in eight states. The agreement calls for the creation of proprietary brand products, JID and LED lighting technologies, ventilation and filtration systems, plus environmental controllers. The two companies will assess the joint effort after 100 days.

Terra Tech unveiled three new E-commerce websites on August 20, 2012. The site will sell everything an urban gardener needs at competitive prices.

Terra Tech, through its subsidiary GrowOp Technology, creates solutions for the cultivation of indoor agriculture. The company’s products are distributed through specialty retailers in the United States and its new E-commerce websites. The Irvine, California, company was founded in 2008.

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Published by Alan Masterson

Alan has over 25 years of trading experience in the U.S. equity markets. He began his career in finance working on a program trading desk specializing in over-the-counter stocks. His career progressed from that point to his current position as senior trader on an institutional trading desk. In the evenings, Alan teaches economics at a local community college. He has contributed articles to various publications over the last six years, including feature articles for an economics magazine and various financial blogs. You may contact Alan via his email (alanmasterson@wallstreetpr.com) or his Google+ page (https://plus.google.com/103338576216002376250).

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