HEMP, INC. (OTCMKTS:HEMP) Crashes After Jump
HEMP, INC. (OTCMKTS:HEMP) managed an astounding 33.33% leap last Wednesday, when it announced the numbers that are to be published within the company’s pending annual report. The ticker’s ascent didn’t last, however – two disastrous sessions later it is back where it was before it turned the tides – $0.0769.
It is no wonder that HEMP‘s flight on the wings of this particular press release didn’t last – even the announcement’s title turns out to be misleading, once its content is taken in. “Hemp, Inc. Reports Full Year and Fourth Quarter 2013 Results” suggests that the company would give investors something more than the bare numbers of the company’s revenue. A 26% rise in sales is a commendable achievement, but without the cost of sales, the total of other expenses and a net profit/loss figure, it doesn’t really mean much.
Despite the obvious ambiguity, the media attention pushed the ticker up, but its ascent proved as short lived as it was impressive. On Thursday, April 10, the SEC suspended Growlife Inc. (OTCBB:PHOT), one of the prominent companies in the marijuana branch, an alleged pioneer in the legal cannabis world. This triggered a wholesale marijuana market crash, which took HEMP down to the bottom of the charts, despite the company’s publishing of numerous optimistic news.
In the ensuing commotion, didn’t matter to investors that The Hemp Exchange has gone live Beta and was fully operational. Nor does it appear that anyone has taken notice of HEMP‘s consulting agreement with Strategic Global Investments, Inc. (OTCMKTS:STBV), which is another dubious triple zero pink sheets company.
Even Friday’s press release that boasted a four digit revenue growth year over year for the first quarter of 2014 appears to have gone by largely unnoticed in the general panic caused by PHOT‘s downfall. Perhaps on another day HEMP‘s announcement that it had made quarterly revenues of nearly $5.5 million would have sent the company flying up the charts, but in the midst of a market crash it failed to make any difference whatsoever.
This was certainly an unfortunate turn of events for HEMP enthusiasts to say the least. But on the bright side, HEMP‘s annual report that was delayed two weeks ago is finally due tomorrow. It is expected to shed some much needed light on the company’s commercial success.
However, even if the annual report for 2013 is favorable, ultimately it is likely that the quarterly report that covers the first quarter of 2014, that will be the most indicative of HEMP‘s progress. Said report will cover the most turbulent days of the marijuana rush, and thus may prove to be the best indicator for the HEMP‘s future prospects, but sadly it’s still a long way away.
Today, HEMP opened 15% up, but is currently headed back down.
