MassRoots Inc (OTCMKTS:MSRT) is a micro-cap stock that has started to spark some interest once again in recent days after suffering a sharp slide off the stock’s “Green Rush 2.0” highs last Fall, working lower from nearly $1.20/share down to around $0.40/share. That level represents basically a test of the stock’s all-time lows recorded last Summer.
However, since hitting that level a couple weeks ago, we’ve seen a new bid enter the equation, and the company has gotten a bit more active on the megaphone, scheduling another investor conference call to update the markets on the state of the MSRT union. Since announcing that call, the stock has powered higher by nearly 20% on strong volume.
MassRoots Inc (OTCMKTS:MSRT) operates a technology platform for the cannabis community in the United States. The company’s mobile network enables users to share cannabis content to connect with the legalization movement. Its network is accessible as a free mobile application through the iOS App Store and the Google Play marketplace and as a Website at massroots.com.
The company also operates MassRoots.com/shop, an e-commerce platform that allows visitors to order MassRoots Inc T-shirts, jars, and stickers; and MassRoots for Business, a free online portal for dispensaries to schedule posts, view analytics, and gain insights into followers. MassRoots, Inc. was founded in 2013 and is headquartered in Denver, Colorado.
MSRT is one of the largest and most active technology platforms for cannabis consumers, businesses, and activists with over 1M registered users.
According to company materials, “MassRoots is one of the largest technology platforms for the regulated cannabis industry. The company’s mobile apps enable consumers to provide community-driven reviews of cannabis strains and products, enabling consumers to make educated cannabis purchasing decisions. MassRoots is proud to be affiliated with the leading businesses and organizations in the cannabis industry, including the ArcView Group and National Cannabis Industry Association.”
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As noted above, MSRT shares have been dropping sharply in recent months, culminating in a test of the all-time lows around $0.40/share. However, the stock has shifted gears over the past 36 hours, suddenly ripping higher apparently in response to the company’s announcement of an unscheduled conference call set for Thursday, June 29, 2017.
If I had to guess, I would say we are seeing some clear short covering. Whenever a stock falls on tough times and then suddenly announces a conference call out of the blue, you can bet standing short interest is going to go from very high to moderate. That’s for two reasons: first, since the stock has been dropping, there are likely shorts in there with big profits to protect, and second, an unscheduled conference call is an unpredictable factor – who knows what they might announce.
The only other key announcement to appear over the past three weeks was the company’s announcement of a strategic investment in High Times Holding Corporation, “High Times”, the leading voice of the Cannabis Industry, in February 2017.
“Like millions of cannabis consumers around the world, the first cannabis-related publication I ever read was High Times Magazine. We have the utmost respect for the trails High Times has been blazing for more than 40 years and I have no doubt the legalization movement would not be as strong today without their leadership,” stated MassRoots Chief Executive Officer Mr. Isaac Dietrich. “We look forward to partnering with High Times to disseminate the most important cannabis legalization information and updates.”
The chart shows 24% added to share values of the company over the past week of action, a bounce that has taken root amid largely bearish action over the larger time frame. However, MSRT has a history of dramatic rallies. In addition, the listing has seen an influx in interest of late, with the stock’s recent average trading volume running 11% over what the stock has registered over the longer term.
At this time, carrying a capital value in the market of $46.5M, MassRoots Inc has a stash ($2.2M) of cash on the books, which stands against virtually no total current liabilities. MSRT is pulling in trailing 12-month revenues of $929K. However, the company is seeing declines on the top line on a quarterly y/y basis, with revenues falling at -10.2%. We will update the story again soon as further details emerge. For continuing coverage on shares of $MSRT stock, as well as our other hot stock picks, sign up for our free newsletter today and get our next hot stock pick!