UPDATE: 5/13/14: MainStreet.com has recently corrected/changed their article to reflect the following: "The original said that Growlife had received money from investors within the Milken Institute. This was/is not so, and Main Street changed their copy to reflect that."
Investors relax: GrowLife Inc (OTCMKTS:PHOT) has not spawned two new companies as of late.
In fact, they're fighting off the bad press of lawsuits.
Recently, MainStreet.com published an article entitled "GrowLife Spawns Two New Cannabis Companies". However, when reading the article, you have to really look for the information about these "two new cannabis companies".
In fact, it's an article about two people who started out with GrowLife that went on to start their own cannabis companies. The article start off with, "Before merging with Stealth Grow, Sterling Scott's GrowLife (PHOT) was known as Phototron Holdings and run by Craig Ellins and Todd Denkin who acted as CEO and president, respectively. The founders went on to launch two separate cannabis companies that have received funding from investors within the Milken Institute in Santa Monica."
So no, there are no new companies. This is more of an update to what they've been doing.
The article mostly explains about the different products in development by the companies. Why would someone write a headline that sounds like "The latest GrowLife Inc news"? I'm not sure. It's obvious the story doesn't support the headline. Nonetheless, I'm sure someone will call them out further on the article later this week.
Meanwhile the stock price for GrowLife Inc is currently trading at 0.115 +0.005 (4.55%). The article is also at the top of the Google search for "GrowLife" . However, beyond what this article is about, investors should be wary about jumping to conclusions before reading the entire context of any article, which includes this one.
Everyone is looking for the pot stock that's going to be their gold mine. And even though many have even criticized me in regards to downplaying the marijuana stock craze, articles like this prove me right: It's a bubble waiting to burst. Do your homework.