Hemp, Inc. (OTCMKTS:HEMP) Explodes Before The Weekend
The situation around Hemp, Inc. (OTCMKTS:HEMP)’s stock quieted down after the initial upward run and the ticker ended most of the sessions in mid-January in the red. Recently, however, things turned for the better and the ticker has returned to its upward direction.
The only way we can explain the shortage of interest in HEMP after the initial hype in the medical marijuana sector was the lack of press releases from the company itself. Lately the PR team has done some work, however, and it seems to be paying off.
As you probably know, the Federal government has allowed the cultivation of hemp in 10 states and this is the main reason behind the recent climb in the medical marijuana sector. Furthermore, HEMP announced a letter of intent (LOI) between their wholly owned subsidiary, Marijuana, Inc. and VaporBrands International, Inc. (OTCMKTS:VAPR).
Under the LOI Marijuana, Inc. will assist VAPR the development and distribution of their marijuana vaporising products through its existing connections with dispensaries around the country. This was another big push for HEMP before the weekend.
It led to a good 17.93% gain in Friday and HEMP closed at $0.0921 on a massive volume. The 119 million shares that switched hands during the session, combined with the jump in price provided for some $10.4 million in dollar volume.
HEMP isn’t doing that bad financial-wise as well, despite the lack of cash on hand that we saw in their financial report covering the period ended September 30, 2013.
- cash: $2.2 thousand
- total current assets: $273 thousand
- total assets: $2.6 million
- revenues: $673 thousand
- net loss: $36 thousand
Still, the company seems to be lowering its net loss, while increasing the revenue, even though it lacks cash on hand. This is rather good, and considering that HEMP is one of the first companies in the sector we reckon that things can get better in the future.
The market cap of the company of $151 million that HEMP has at the moment, however, compared to its financials, is a bit inflated, so the ticker might go in any direction at any time. This is the exact reason for which we would advise you to do your due diligence and weigh out the risks before jumping on their train.
Growlife, Inc. (OTCBB:PHOT) also got a piece of the pie after the new Federal law allowing hemp cultivation and jumped 11.36% in Friday, generating $19.2 million in dollar volume.
