MassRoots Inc (OTCMKTS:MSRT) recently started to show us some good signs. That’s why we titled our last piece with the notion that a turnaround was at hand. At that time, the stock was drifting around the $0.30/share level. We have seen shares triple in the past couple weeks since that post, and that now-familiar explanation looks to be to blame: the blockchain pivot. It seems more and more the case – if you want big gains in share pricing, just put out a press release that claims you are now a blockchain company.
MSRT is a new case in point: The company just announced it has formed MassRoots Blockchain Technologies, Inc., a wholly-owned subsidiary of MassRoots, Inc. dedicated to developing blockchain-based solutions for the cannabis industry. Shares have launched higher as a result. If you are in this stock from our last post claiming that some upside may be ahead, we would see this as an immediate gift and take it to the bank.
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.
MSRT 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, we turned bullish on this stock earlier this month. For readers who took that perspective and put it to use in their portfolios, the company’s recent claim to now suddenly be a blockchain play is probably best taken as a gift of money to shareholders and swiftly put in the bank — at least partially.
“We believe blockchain has the potential to enable the cannabis industry to operate more efficiently and with a greater degree of accountability and transparency,” stated MassRoots Chief Executive Officer Isaac Dietrich. “MassRoots looks forward to being a pioneer in exploring blockchain-based solutions for the multi-billion dollar cannabis industry.”
“The blockchain is an incorruptible digital ledger of economic transactions that can be programmed to record not just financial transactions but virtually everything of value,” according to Dan and Alex Tapscott in the Blockchain Revolution (2016). According to the release, “the most well-known application to blockchain technology has been cryptocurrencies, which have grown to a market valued at more than $600 billion, according to CoinMarketCap.com. The broadening of this technology spans many other applications and may well create various opportunities within the regulated cannabis market.”
At this time, carrying a capital value in the market of $67.4M, MSRT has a bankroll ($267K) of cash on the books, which must be weighed relative to about $334K in total current liabilities. MSRT is pulling in trailing 12-month revenues of $498K. However, the company is seeing declines on the top-line on a quarterly y/y basis, with revenues falling at a precipitous rate of decline over recent periods. This may indeed be a very interesting story and we will naturally look forward to updating it again very soon. Sign-up for continuing coverage on shares of $MSRT stock, as well as other hot stock picks, get our free newsletter today and get our next breakout pick!
Disclosure: we hold no position in $MSRT, either long or short, and we have not been compensated for this article.