Hemp Inc (OTCMKTS:HEMP) Barely Avoids Another Red Close
After sinking lower and lower down the chart and crashing by more than 10% last Friday the stock of Hemp Inc (OTCMKTS:HEMP) started this week on a much positive note when it closed in the green yesterday. The problem is that a gain of less than 2% that was a result of a rally in the last minutes of the trading day fails to inspire much confidence in the ability of the ticker to recover. Not to mention that yesterday’s performance was supported by a new PR that was issued by HEMP.
In it the company announced that its revenues for the third quarter of the year are 58% higher than those for the previous quarter. And that was about it. Despite the PR being rather lengthy there was scarcely any useful information in it. HEMP didn’t even mention any concrete numbers. So let’s see what the quarterly report really had to show:
• $80 thousand cash
• $1 million total current assets
• $173 thousand total current liabilities
• $72 thousand sales
• $3.1 million net loss
Even if you take into account that $2.38 million of the net loss are stock compensations the revenues are still negligible when compared to the losses.
Not to mention that the dilution of the common stock is still ongoing. During the quarter millions of fresh shares were issued through the conversion of preferred and preferred K shares. As a whole the O/S of the company stood at just below 400 million shares at the end of September. The scary part is that just a couple of months ago HEMP increased its authorized shares to 5.5 BILLION and then implemented a 1-for-10 reverse split.
So is there something that could get investors hyped up about the company? How about the decortication plant that the company is building in North Carolina? Well, the reassembly of the plant is still being plagued by considerable delays. According the latest information provided by HEMP the company now expects its Temafa decortication line to become operational in early 2016 when it will be used to process kenaf. Hemp processing is expected to commence in the third or fourth quarter of 2016.
HEMP has made many impressive jumps up the chart thanks to positive industry-wide developments but left on its own the company has been having troubles getting investors excited. The definitive 5-year term agreement with Hemp Blue that was announced on November 17 definitely failed to get a positive reaction. Especially when investors learned that Hemp Blue is a startup that is trying to raise funds through a Kickstarter campaign.
