United Treatment Centers, Inc. (OTCMKTS:UTRM) Slides, While Awaiting New PR

If you trusted the potential of United Treatment Centers, Inc. (OTCMKTS:UTRM), this may have cost you as much as 60% losses in the past few days. UTRM draws in investors with one good day, but unfortunately the ticker is under pressure, and sinks deeper into the double-zero range. On Monday, UTRM slid another 15% to $0.0044, as selling volumes expanded to above $1 million or about 250 million shares. UTRM0428.png

UTRM is dangerous for its low price, which may attract new buyers, only to take them for a ride again. The newly minted marijuana company is active with corporate updates, mostly on the potential of its media websites. We still don’t know if cannabis-themed online media would bring in large profits, but this strategy works well for generating publicity.TTDZ0428.png

UTRM went so far as to use the calendar date, April 20th, making up the iconic 420 number, a code word for the use of recreational cannabis. And indeed, 4/20 proved to be a day of extremely robust buying- only to have UTRM crash right on the next day.

Still, investors believe that the slide in the past weeks is due to frightened sellers moving out, disbelieving the potential of the company. But even if UTRM provides enough good news to prop its stock price, this only proves that the rise in the graph is due mostly to fluff and PR promises. Still, a new message is expected soon, since the last PR came in more than a week ago- and this could trigger some bargain-buying.

But consider for yourself if UTRM is much of a bargain with those rather weak financial results:

  • cash: $7 thousand
  • total assets: $21,400
  • total liabilities: $780 thousand
  • yearly revenues: $144 thousand
  • yearly net loss: $228 thousand

Let’s hope that the online model proves cheap enough, so that UTRM can survive for a while, and even log some advertising revenues. Still, the idea of becoming a cannabis company through websites means that UTRM has lesser perspective compared to growers, greenhouse suppliers or other sellers of more directly related products. With so little cash, UTRM would be hard-pressed to even acquire a grower or seller license in the states where cannabis is legalized.

Triton Distribution Systems, Inc. (OTCMKTS:TTDZ) is almost in the same boat, trying to adjust the real estate business model to the medical cannabis sector. Now, TTDZ manages to hold onto the $0.03 levels. But few sub-penny selections manage to shoot upward to a price of a few cents.

USA Real Estate Holding, Co. (OTCMKTS:USTC) suffered even more, because of an over-zealous email promotion. The extra publicity only caused sellers to see a golden opportunity and shed their shares, bringing USTC down from $0.05 to the low double-zero levels. USTC also promised success through real estate deals tailored to the MMJ industry.

If you see UTRM as a growth opportunity, be aware of your time frame and the affordable investment, since the ticker has proven it could have deep setbacks.

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