Hemp, Inc. (OTCMKTS:HEMP) Accelerates Its Decline

So far the stock of Hemp, Inc. (OTCMKTS:HEMP) has registered six straight sessions of corrections. Yesterday the fall became even steeper with another 9% of the stock’s value getting wiped. The fact that the ticker closed at its lowest point of day of $0.032 makes the picture even more depressing.

The downwards trend began on the day HEMP filed their financial report for the quarter ending September 30 and looking through it makes it painfully obvious why investors are rather disillusioned. It is difficult to be excited about a company with:

• $1111 cash
• $5.1 million total current assets
• $957 thousand total current liabilities
• $14 476 sales
• $2.3 million net loss from operations

Well, you might think that the amount of current assets is actually rather impressive especially when compared to the rest of the numbers. The problem is that most of the assets are comprised of securities held for sale. HEMP received these shares as a payment from its various consulting clients and the company might find it rather hard converting them into cash.

One of the consulting clients –WebXU, Inc. (OTCMKTS:WBXU) is currently trading on the Grey Market and bears the skull and crossbones mark. At the same time two of the other clients performed reverse splits of their commons stock. In the PR published on November 25 HEMP also revealed that they have not received the contracted amounts of shares from Green Concepts, Inc. (OTCMKTS:LKEN) and Strategic Global Investments, Inc. (OTCMKTS:STBV). Even their latest consulting agreement with VaporBrands International, Inc. (OTCMKTS:VAPR) that was announced on November 5 seems a bit lackluster when you take into account that VAPR finished the third quarter of the year with $13 cash and cash equivalents, $26 117 total assets and zero revenues.

Meanwhile the CEO of HEMP is continuing to convert his preferred K shares into common stock. Just for the three months covered by the report another 7.2 million preferred K shares were turned into 72 million common shares. As of September 30 HEPM’s outstanding shares had reached 2.67 billion.

Even if you believe that the decortication plant in North Carolina will manage to boost HEMP’s balance sheet you should still approach the stock with caution. The multitude of red flags demand extensive due diligence before putting any of your hard-earned money on the line.