Hemp, Inc. (OTCMKTS:HEMP) Can’t Keep Its Gains
The stock of Hemp, Inc. (OTCMKTS:HEMP) is among the older pennystocks involved in the marijuana and hemp industries and it is certainly showing in their chart performance. At the start of February the rampant optimism brought them from $0.075 to more than 30 cents in just 5 sessions. Since then though things have quickly taken a turn for the worse.
Out of the last 18 sessions HEMP has closed in the red 13 times. The last attempt for a recovery happened on March 10 when they gained 16% and closed at $0.125 but even this price seems to be too much to handle. Yesterday HEMP closed at $0.1202 just a nudge above the lowest point for the day of $0.12. The session registered the least amount of traded shares for the last month – 22.7 million.
The company is trying to keep interest high but the barrage of optimistic PR articles is having lesser and lesser impact on the performance of the stock. For the past two months HEMP have entered into numerous consulting agreements with other pennystocks but that doesn’t seem to impress traders. Well, we can’t say they don’t have good reasons to be skeptical – most of those pennystocks are riddled with red flags.
One of the recent announcements talked about a lucrative consulting deal with WebXU, Inc. (OTCMKTS:WBXU), a company that in the middle of January finally managed to file its annual report for 2012!!! Hemp should file its annual report for the last year by the end of the month and if it shows enough positive results it may finally give the stock the much needed push in the right direction.
The report will also reveal how much newly issued shares have seen the light of day during the past couple of months. As we have said on a couple of occasions in our previous articles covering the company the CEO of HEMP owns quite a lot of preferred K shares and has been slowly but surely converting them into common shares resulting in 1.6 billion outstanding shares at the end of September, 2013.
With the hype slowly dying out HEMP will have to find something else to support its current stock price. Despite falling down by nearly 60% from the recent highs the company is nowhere near its price of 1 cent held in December. Do your own due diligence, plan accordingly and never invest into a pennystock based solely on hype.
Another marijuana company that has displayed an almost identical chart performance is Cannabis Science, Inc. (OTCMKTS:CBIS). They too run to a high of 30 cents at the start of February just to start rapidly losing positions. Yesterday the stock corrected by 4% and closed the session at $0.182.