Terra Tech Corp (OTCMKTS:TRTC) On The Verge Of A Breakout

Things keep getting better for Terra Tech Corp (OTCMKTS:TRTC). The Blum acquisition is a real game changer for the company and sets the company up to the premier cannabis company in this fast-growing space. As more details emerge, we are getting more and more excited about shares of Terra Tech. Without a doubt, the low is in on the stock and we think the stock is on the verge of breaking out for several reasons.For one, shares of TRTC are now quite undervalued. Terra Tech is now forecast to post revenues THIS YEAR of $20 to $22 million. With a current market cap of around $41 million, TRTC is trading at just two times revenues. This is a ridiculously low valuation for a company like TRTC in such a fast-growing industry. TRTC will be one of the prime beneficiaries of this growth.We think 2016 is going to be the marijuana industry’s big year. The reason being is that the marijuana industry has a lot of tailwinds heading into 2016. Roughly 14 states could legalize marijuana this year, adult-use cannabis or possibly both, either at the ballot box or through state legislatures. While it’s doubtful all those states will be successful, there’s a good chance at least a handful will legalize in 2016. No other single year has offered such incredible promise in terms of the sheer volume of states that could legalize, thanks to other pioneering marijuana markets and growing support for cannabis in general.

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Where we think TRTC will benefit the most from these tailwinds is in Las Vegas. Nevada is a key market for the cannabis industry as the state will recognize the medical status of non-residents. With 40 million tourist arrivals to Las Vegas each year and more than 30% of those coming from California where medical marijuana is legal, you have the potential for Las Vegas to become the “Amsterdam of America.” Furthermore, recreational marijuana use will be on the Nevada ballot box come November.Blum just held a job fair at the Palms Hotel for 125 positions and it was standing room only. The first medical marijuana dispensary will be open by March 1. The other two are set to be open late April or early May. All three of them will be located one mile from the Las Vegas Strip. TRTC CEO Derek Peterson summed up the interest the company saw from job seekers.

"I think in this economy right now, especially if we're in this point where we might be dipping back into a bit of a recession, this happens to be an industry that's got a little bit of a recession-proof aspect associated with it. So I think job seekers are looking for something like that right now."

This is great insight and something we are seeing in the markets as well. There's a lot of uncertainty in the economy right now, especially since it's an election year. Marijuana is one sector that we see as immune from an economic downturn and another reason why we think pot stocks like TRTC will rally this year. One of the main reasons is that we like what CEO Derek Peterson is doing and see the company executing on its strategy. Here's his vision.

"Throughout 2015 we made significant headway building our reputation in the industry and implementing our growth initiatives. In particular, we are pleased with the progress we have made transitioning into a leading supplier of medical marijuana through building our retail networks, pursuing various medical cannabis operational certificates and rolling out the IVXX brand. We are greatly encouraged by the ongoing changes in public policy, including California's recently enacted Marijuana Regulation and Safety Act, which will help increase our total addressable market. As we enter 2016, we aim to pursue an aggressive M&A strategy to scale the business and enhance our offering. Our focus is on expanding and fully integrating our capabilities in cultivation, extraction, branding and retail so that we are recognized as experts at every stage of the cannabis lifecycle. The progress we have made to date will enable us to move forward with ramping up our operations, monetizing our products and ultimately bringing value to shareholders."

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What's most intriguing about TRTC and Blum is that it appears they have global ambitions. The company looks to have plenty of momentum and it doesn't take much to get shares of TRTC spiking. It's one of the original pot stocks and has plenty of brand name recognition. The more people hear about Terra Tech and Blum is good news for shareholders of TRTC. We think the mistakes of the past are now firmly behind the company and see clear sailing ahead. Terra Tech is one of the best positioned companies to benefit from the coming boom in cannabis. Get the latest updates on TRTC by signing up to Insider Financial today!Disclosure: We have no position in TRTC either long or short. We have not been compensated for this article.