HEMP, INC. (OTCMKTS:HEMP) Breaking The Fall
On Tuesday HEMP, INC. (OTCMKTS:HEMP) managed to jump 15.48% up. The following two sessions brought HEMP up by another 3.91% and 4.38%, respectively. The company was launched up by yet another barrage of wordy and uninformative press releases, of the kind it seems to be producing on a daily basis lately.
To elaborate – as of Feb. 14, the company has 14 press releases that were issued in February alone! That means that the company has issued ten publications over the course of just ten trading sessions. Moreover, if a potential investor is to take the time to actually read said releases he is in for a disappointment, as they contain little or no relevant information on materially significant events.
For instance in Monday’s press release HEMP applauded President Obama for signing the 2014 Agricultural Act into law which contained a provision making industrial hemp legal. Enthusiasm and optimism ran rampant in the publication, however a second glance at it reveals the fact that it disclosed little else.
On the next day HEMP pumped out two separate pres releases. The first one was somewhat informative, noting the Dewmar International BMC, Inc. (OTCQB:DEWM) announcement that the company has secured the co-branding and professional consulting service of a wholly-owned subsidiary of Hemp, Inc. Both publications contained no citations or even a recap of the agreement, but at least investors were informed that both companies will work together to “strategically launch a series of consumable goods” based on hemp. Said goods are expected to qualify to be sold in all 50 states.
The second press release pretty much reiterated the interview of HEMP CEO Bruce Perlowin who recently appeared on Bloomberg TV. The only thing that was added was a mention of HEMP‘s current market value and trading volume.
The next relevant piece of news of HEMP‘s newest partnerships was as unimpressive as the new partner itself. The company seems to be very proud of its Joint Venture Agreement with Resource Ventures, Inc. (OTCMKTS:REVI) – a company that had been the target of multiple stock pumps in the past.
As a matter of fact none of the abovementioned press releases can even begin to compare to HEMP‘s latest announcement, in which the company stated its intent to launch “The Hemp Nation Magazine”. Said magazine is to be the work of “the most knowledgeable advocates and writers around the ideas that are now driving a new clean and green American Industrial Hemp Revolution”. It will be printed and made available on-line on “Hemp’ Independence Day (July 4, 2014)”.
Evidently the burst of activity, however ineffectual, was enough to convince buyers. Despite the lack of relevant news in them, the press releases succeeded in pushing the ticker upwards significantly, and after more than 400 trades HEMP was once again back to the high of $0.1691 by the end of the session. Whether HEMP stock will continue its news-driven jump, or slump when the news grows cold, remains to be seen.
Given the hemp and marijuana market’s present volatile state extensive due diligence is advised before before investors commit to high risk stocks. For more information and commentary on that, buyers would do well to consult the advice of the FINRA.
