When a tide rises, it lifts all boats along, and this is the story in the past months for the medical marijuana industry, benefiting all related businesses. The news of a successful quarter for Growlife Inc ( OTC:PHOT ), as the company jumped by mode than 50% on Wednesday upon releasing its latest quarterly results. But the latest dramatic spike in PHOT stock follows a month of low-key paid promotions. So far in November, the hydroponics and marijuana growing company spent $14,750 for nine promotional emails, trading in a lively high volume. For the quarter ended September 30, the company shows the following financials: $ 475,870 in revenues, compared to $ 215,654 for Q3 of 2011 $ 164,181 cash $1,689,638 total liabilities $374,496 operating loss While PHOT claims the rise in net income is due to the activities of hydroponics system seller Greners.com (misspelled in the press release), it seems the bottom line is affected by a single item, a re-assessment of "fair value of derivatives" which shows great variation from quarter to quarter. This "fair value" measures the financial estimate for the newly acquired company, a form of goodwill and trust in the value of Greners.com, but not necessarily related to its direct sales and gains. Growlife Inc. still has an operational loss upward of $300,000. In fact, the neat net income, a good result over previous seasons, is merely an inside re-shiffle of numbers, and the group still burns through cash and hopes for the best. The number of PHOT shares outstanding has grown significantly, to more than 324 million. For a reverse merger, possibly with Greners.com, the company issued 152,343,383 shares of common stock. With this level of stock dilution and inside reassessment of resources, it is no surprise if the PHOT stock follows the pattern of a promoted company and fall in the near future on insider sales which could happen at any moment. The lack of strong enough real business may mean a strong motivation to use stock pumps for profit. The paid promoter, Orbitstocks.com, dealt with Gunther Grant, Inc. ( PINK:GNGR ) and delivered the predictable promotional results. The company jumped significantly on the promotional emails and lost more than 90% of its value after the ending of the emails.